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in Ukiah, CA
Most Ukiah buyers qualify for both FHA and USDA loans. The choice comes down to how much cash you have and where you're buying.
FHA works anywhere in Mendocino County with just 3.5% down. USDA requires zero down but limits where you can buy and caps your income.
FHA loans need 3.5% down with 580 credit or 10% down with 500-579 credit. You'll pay upfront mortgage insurance of 1.75% plus annual premiums of 0.55-0.85%.
These loans work for any property type in Ukiah — condos, single-family homes, even some manufactured homes. No income caps apply, and most lenders close FHA loans in 25-35 days.
USDA loans require zero down payment for eligible properties in rural Mendocino County areas. You pay a 1% upfront guarantee fee and 0.35% annual fee — much cheaper than FHA insurance.
Income limits apply based on household size. Properties must meet USDA location standards, which excludes some parts of Ukiah proper but covers most surrounding areas.
Down payment is the obvious split. USDA saves you $10,500 on a $300K home versus FHA, but you might not qualify based on where you're buying or what you earn.
Monthly costs favor USDA too. On that same $300K loan, USDA mortgage insurance runs about $88 per month while FHA costs $175-213. Over 30 years, USDA saves $31K-45K in insurance alone.
Check USDA eligibility first. If your property qualifies and your income fits the limits, USDA beats FHA on cost every time. You'll save thousands upfront and monthly.
Go FHA if you're buying in restricted areas, earn above USDA limits, or need faster closing. FHA works anywhere and lenders process these loans quicker because they see more volume.
Some Ukiah addresses qualify, but many don't. Check the USDA property eligibility map with your exact address before making offers.
Limits vary by household size and change annually. Most households earning under $103,500 qualify, but verify current limits with your broker.
USDA costs roughly half what FHA charges monthly. On $300K borrowed, expect $88/month USDA versus $175-213/month FHA.
You'll need to refinance into conventional to drop insurance with either loan. FHA insurance stays for the loan life if you put down less than 10%.
Yes. FHA allows up to 6% seller-paid costs while USDA caps it at 6% too, covering most closing expenses.