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in Whittier, CA
Whittier sits in a zone where both FHA and USDA loans can work, depending on the property location. Most of Whittier qualifies for FHA. Some neighborhoods on the city's edges might qualify for USDA if they meet rural designation criteria.
Both loans offer easier approval than conventional mortgages. FHA requires 3.5% down. USDA offers zero down for income-qualified buyers in eligible areas.
FHA loans let you buy with 3.5% down if your credit score hits 580. Scores between 500-579 need 10% down. No income limits apply, so higher earners can still qualify.
You'll pay mortgage insurance for the loan's life on most FHA loans. The upfront premium is 1.75% of the loan amount. Monthly premiums range from 0.45% to 1.05% depending on your down payment and loan term.
USDA loans require zero down payment but only work in designated rural areas. Parts of eastern Whittier might qualify. You'll need to verify the specific address with USDA's eligibility map.
Income limits apply based on household size and county median income. Most borrowers need credit scores of 640 or higher. USDA charges a 1% upfront fee and 0.35% annual fee, lower than FHA's insurance costs.
Down payment is the biggest split. FHA needs 3.5% minimum. USDA needs nothing down. For a $500,000 home, that's $17,500 versus zero out of pocket at closing.
Geography and income determine which loan you can use. FHA works everywhere. USDA only works in eligible rural zones and caps your household income. Most of central Whittier won't qualify for USDA due to population density.
Choose USDA if the property sits in an eligible zone and your income falls under the cap. The zero down payment saves significant cash. Lower insurance costs also reduce your monthly payment compared to FHA.
Go with FHA if you're buying in central Whittier or earn above USDA income limits. FHA works on any property type and closes faster since lenders process more of them. If you have cash for a down payment but want lower rates than conventional, FHA delivers.
Run the numbers on both if your property qualifies for USDA. Compare total monthly costs including insurance. Some borrowers save $100+ per month with USDA despite having down payment funds available.
No. Central Whittier is too densely populated. Some eastern edges near the hills might qualify. Check USDA's eligibility map with the exact property address.
USDA typically costs less monthly due to lower mortgage insurance. But it depends on your down payment amount and loan structure.
Yes. FHA has no income limits. It works for high earners who want low down payment options.
FHA usually closes quicker. More lenders process FHA loans daily, and appraisers know the requirements better than USDA's rural property standards.
Yes. FHA allows up to 6% seller concessions. USDA also permits seller-paid closing costs, which helps when you're going zero down.