Question 1

Does any part of West Covina qualify for USDA loans?

Accepted Answer

Some areas on the city's edges may qualify, but most of West Covina is too densely populated. Check the USDA property eligibility map with the exact address before proceeding.

Question 2

Which loan has lower mortgage insurance?

Accepted Answer

USDA costs less—0.35% annually versus 0.55-0.85% for FHA. But USDA's 1% upfront fee and FHA's 1.75% upfront are close when you run the full payment comparison.

Question 3

Can I use FHA or USDA for a condo in West Covina?

Accepted Answer

FHA yes, if the condo project is FHA-approved. USDA rarely approves condos, focusing instead on single-family homes in eligible rural zones.

Question 4

What credit score do I need for each loan?

Accepted Answer

FHA officially allows 580, though most lenders prefer 600+. USDA typically requires 640 minimum for automated approval, though manual underwriting can go lower.

Question 5

Do both loans require mortgage insurance forever?

Accepted Answer

USDA requires it for the life of the loan. FHA requires it permanently if you put down less than 10%, which covers most FHA borrowers.

FHA vs USDA Loans in West Covina: Which Government Loan Fits Your Budget?