Question 1

Is Fort Bragg eligible for USDA loans?

Accepted Answer

Fort Bragg is in a rural area of Mendocino County that typically qualifies. Verify the specific property address on the USDA eligibility map.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA allows scores as low as 580 with 3.5% down. Most USDA lenders want at least a 640 to run automated approval.

Question 3

Do USDA loans really require zero down?

Accepted Answer

Yes — USDA is one of the only programs with true 100% financing. You still need to cover closing costs unless the seller contributes.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA mortgage insurance runs lower than FHA on a monthly basis. The difference grows significantly over a 30-year loan term.

Question 5

Can I use either loan for a fixer-upper in Fort Bragg?

Accepted Answer

FHA has a 203k rehab option for fixer-uppers. USDA has limited repair financing. Standard USDA requires the home to meet livability standards at closing.

Question 6

Is there an income limit for FHA loans?

Accepted Answer

No. FHA has no income ceiling. USDA caps household income based on county and family size — check current Mendocino County limits before applying.

FHA vs USDA Loans in Fort Bragg, CA