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in Fort Bragg, CA
Fort Bragg sits in USDA-eligible territory, making it one of California's coastal towns where zero-down USDA loans compete with low-down FHA financing. Both programs help buyers with limited cash, but they work differently.
FHA loans cost more upfront but work anywhere in Fort Bragg. USDA loans require zero down but limit who qualifies by income and property location within Mendocino County.
FHA loans require 3.5% down with a 580 credit score. You pay an upfront mortgage insurance premium of 1.75%, plus annual premiums of 0.55-0.85% until you refinance or pay off the loan.
FHA works for any property type in Fort Bragg — downtown condos, coastal homes, or inland houses. No income caps apply, so higher earners can use FHA if they want the low down payment option.
USDA loans require zero down payment if your income stays below program limits. Mendocino County's limit is typically 115% of median income, which varies by household size.
The property must sit in a USDA-eligible zone. Most of Fort Bragg qualifies, but some areas near the coast may not. USDA charges a 1% upfront fee and 0.35% annual premium — lower than FHA's ongoing costs.
Down payment separates these programs first. USDA beats FHA with zero down versus 3.5%, saving roughly $14,000 on a $400,000 purchase. But USDA restricts income and property location.
Mortgage insurance costs less with USDA. Annual premiums run 0.35% versus FHA's 0.55-0.85%. On a $400,000 loan, that's $1,400 versus $2,200-$3,400 yearly — significant over time.
Choose USDA if you qualify by income and location. Zero down beats 3.5% down, and lower insurance saves thousands yearly. Most Fort Bragg properties work, but verify eligibility before house hunting.
Pick FHA if USDA denies you for income or property location. FHA also works better if your credit sits between 580-619, or if you need to close faster — USDA processing runs slower than FHA.
Most of Fort Bragg qualifies, but some coastal zones may not. Check USDA's property eligibility map before making offers — lenders verify this during application.
Limits vary by household size, typically around 115% of area median income. A family of four usually caps around $110,000-$120,000, but verify current limits with your broker.
Not automatically. You must refinance to conventional once you hit 20% equity to remove FHA mortgage insurance — it stays for the loan's life otherwise.
FHA typically closes quicker. USDA adds processing time for income verification and property eligibility checks — plan 45-60 days versus FHA's 30-45.
Yes. Both FHA and USDA accept gift funds from family for down payment and closing costs — USDA allows this even with zero down required.