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in Point Arena, CA
Point Arena sits in a USDA-eligible zone, which means buyers here get access to two strong government-backed options. FHA allows 3.5% down with credit as low as 580, while USDA offers zero down if you meet income caps.
Most Point Arena buyers qualify for both programs. The choice comes down to how much cash you have and whether your household income falls within USDA's rural limits.
FHA loans accept credit scores as low as 580 with 3.5% down. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that last the life of the loan on most purchases.
There's no income cap with FHA. You can earn whatever you make as long as your debt-to-income ratio stays under 50%. That flexibility makes FHA the default choice for buyers who don't qualify for USDA.
USDA loans require zero down payment in eligible rural areas like Point Arena. You need 640 credit minimum and household income can't exceed local caps, which vary by family size.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee. That annual cost is significantly lower than FHA's premiums. The program also allows sellers to cover all your closing costs.
Down payment separates these programs most clearly. FHA needs 3.5% while USDA needs nothing. On a $400,000 home, that's $14,000 cash versus zero.
Credit requirements differ too. FHA goes down to 580 while USDA stops at 640. Income matters only for USDA, which caps household earnings based on county limits and family size. FHA has no such restriction.
Check USDA eligibility first. If your income qualifies and you have 640+ credit, USDA beats FHA by eliminating the down payment entirely. That keeps more cash in your pocket for reserves and moving costs.
Go with FHA if your income exceeds USDA caps or your credit sits between 580-639. FHA also processes faster in most cases since fewer lenders handle USDA. Either way, Point Arena's rural location gives you strong options that urban buyers don't get.
Yes. Point Arena sits in a USDA-eligible rural zone. Properties here qualify as long as they meet property and borrower requirements.
USDA typically costs less monthly due to lower mortgage insurance. The 0.35% annual fee beats FHA's higher premiums on most loan amounts.
Yes. FHA has no income limits. USDA restricts eligibility based on household income relative to area median levels.
FHA usually closes quicker. More lenders handle FHA loans and underwriting moves faster than USDA's rural development process.
USDA requires 640 minimum. FHA accepts 580 but most lenders prefer 600+ for smoother approvals and better overlays.