Question 1

Is Chowchilla eligible for USDA loans?

Accepted Answer

Much of Chowchilla qualifies, but eligibility is address-specific. Run the property through the USDA eligibility map to confirm.

Question 2

Which loan has lower mortgage insurance costs?

Accepted Answer

USDA's annual guarantee fee is typically lower than FHA's MIP. Over a 30-year loan, that gap adds up.

Question 3

Can I use either loan to buy a fixer-upper?

Accepted Answer

FHA allows rehab financing through the 203k program. USDA has stricter property condition requirements and no rehab option.

Question 4

What credit score do I need for each loan?

Accepted Answer

FHA approves down to 580 with 3.5% down. Most USDA lenders want 640 or higher. Rates vary by borrower profile and market conditions.

Question 5

Do both loans require the home to be a primary residence?

Accepted Answer

Yes. Neither FHA nor USDA can be used for investment properties or vacation homes.

Question 6

Are there loan limits I should know about?

Accepted Answer

FHA sets county-level loan limits for Madera County. USDA doesn't have a hard loan limit but caps borrowers by income and debt ratios.

FHA vs USDA Loans in Chowchilla, CA