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in Fairfax, CA
Fairfax sits in Marin County, where home prices typically exceed national averages. Both FHA and USDA loans offer government backing, but they serve different buyer profiles.
FHA works almost anywhere and requires just 3.5% down. USDA requires zero down but limits where you can buy and caps your income. Your choice depends on location eligibility and how much cash you have.
FHA loans let you buy with 3.5% down if your credit score hits 580. You pay mortgage insurance for the life of the loan unless you put down 10% or more.
These loans work on any property type in Fairfax—single-family homes, condos, townhouses. Sellers can contribute up to 6% toward closing costs, which helps when cash is tight.
USDA loans require zero down payment, which sounds perfect until you check eligibility. The property must be in a USDA-approved rural or suburban area, and your household income can't exceed 115% of the area median.
Marin County's high incomes make USDA qualification tough. Most Fairfax properties likely fall outside USDA maps, and even qualifying areas face strict income caps that eliminate many buyers.
The down payment gap is obvious: USDA needs nothing, FHA wants 3.5%. But USDA's location and income restrictions flip that advantage. Check the USDA eligibility map before you fall in love with a property.
FHA mortgage insurance costs more annually but drops off if you refinance later. USDA charges less in annual premiums but adds an upfront guarantee fee. Both require insurance for the loan's life under typical scenarios.
Run the USDA eligibility check first. If your income exceeds limits or the property sits outside approved zones, FHA is your only government option. Most Fairfax buyers end up here.
If you qualify for USDA, take it—zero down beats 3.5% down every time. Just verify the property location before making an offer, because Marin County's developed areas often don't qualify.
No. USDA restricts loans to designated rural and suburban zones. Most developed Marin County areas don't qualify, so check the USDA eligibility map early.
USDA charges less annually than FHA. But FHA lets you drop insurance by refinancing to conventional once you hit 20% equity.
Yes. FHA goes down to 580, USDA typically requires 640. Both work for buyers rebuilding credit.
USDA caps household income at 115% of area median. Marin's high median incomes mean many buyers exceed limits even on moderate salaries.
Yes. FHA allows up to 6% seller concessions. USDA permits seller contributions too, which helps offset your zero down payment.