Question 1

Is Ukiah eligible for USDA loans?

Accepted Answer

Much of Mendocino County qualifies as rural under USDA guidelines. Confirm your specific address on the USDA eligibility map before assuming.

Question 2

Which loan has lower mortgage insurance?

Accepted Answer

USDA does. Its annual fee is 0.35% versus FHA's higher monthly premium — that gap adds up over a 30-year loan.

Question 3

Can I use USDA with a low credit score?

Accepted Answer

Most USDA lenders want 640+. If your score is lower, FHA is the more realistic option at 580 minimum.

Question 4

Do both loans require the home to be primary?

Accepted Answer

Yes. Neither FHA nor USDA allows investment properties or vacation homes. Owner-occupancy is required.

Question 5

What income limits apply to USDA loans in Mendocino County?

Accepted Answer

Limits vary by household size and are set by the USDA annually. We check current limits for every USDA deal we run.

Question 6

Which loan is faster to close?

Accepted Answer

FHA typically closes faster. USDA requires an extra layer of rural development approval, which can add time.

FHA vs USDA Loans in Ukiah, CA