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in Madera, CA
Both FHA and USDA loans help Madera buyers get into homes with minimal cash down. The difference comes down to where you're buying and what you earn.
FHA works anywhere in Madera County with just 3.5% down. USDA offers zero down but limits eligibility to specific areas and income thresholds.
FHA loans require 3.5% down if your credit score hits 580. Scores between 500-579 need 10% down, though most lenders set their own 580 minimum.
You can buy anywhere in Madera with FHA — city limits, county areas, new builds, fixer-uppers. No location restrictions and no income caps to worry about.
Upfront mortgage insurance costs 1.75% of the loan amount at closing. Annual MIP runs 0.55%-0.85% depending on down payment and loan size, and it stays for the loan's life on most purchases.
USDA loans require zero down payment if you buy in an eligible rural area. Parts of Madera County qualify, but you need to verify the specific address before making offers.
Your household income can't exceed 115% of the area median. For Madera County, that caps most families around the mid-$90,000s depending on household size.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee. That annual cost is lower than FHA's ongoing insurance, and you can finance the upfront fee into the loan.
FHA lets you buy anywhere. USDA restricts you to eligible rural areas, which covers some Madera County properties but excludes others based on population density.
USDA requires zero down but caps your income. FHA needs 3.5% down but doesn't care what you earn, making it the only option for higher-income buyers who lack savings.
Both accept credit scores around 580-620. FHA typically closes faster because USDA adds extra underwriting steps and property eligibility reviews that can delay funding.
Choose USDA if you're buying in an eligible area and your income falls within limits. Zero down beats 3.5% down every time when you qualify.
Go FHA if the property sits outside USDA zones, your income exceeds limits, or you need faster closing. FHA also wins for buyers stretching to higher price points since USDA caps loan amounts below conventional limits in many areas.
Most properties within city limits don't qualify. USDA targets rural areas, so you'll need to check the specific address on the USDA eligibility map.
USDA's annual fee runs 0.35% versus FHA's 0.55%-0.85%. USDA saves you money on ongoing insurance if you qualify.
Yes. Neither FHA nor USDA works for investment properties or second homes.
FHA insurance stays for the loan's life on most purchases. You'd need to refinance to conventional to drop it once you hit 20% equity.
FHA typically closes quicker. USDA adds extra property and income verification steps that extend timelines.