Question 1

Is Atwater eligible for USDA loans?

Accepted Answer

Parts of Atwater may qualify. USDA eligibility is property-specific, so we check the address directly. Don't assume — confirm before you make an offer.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA allows 580 with 3.5% down, or 500 with 10% down. USDA typically wants 640 or higher for automated approval.

Question 3

Do USDA loans take longer to close?

Accepted Answer

USDA loans can take longer because they require a separate USDA underwriting step. Budget extra time — sometimes two to three weeks more than FHA.

Question 4

Can I use gift funds with either loan?

Accepted Answer

Yes. Both FHA and USDA allow gift funds. FHA rules are well-established; USDA also permits gifts but documents them carefully.

Question 5

Which loan has lower mortgage insurance?

Accepted Answer

USDA generally has lower ongoing mortgage insurance costs than FHA. The savings are real over the life of the loan.

Question 6

Are there income limits on FHA loans?

Accepted Answer

No. FHA has no income ceiling. USDA does — and it's based on household size and Merced County limits.

FHA vs USDA Loans in Atwater, CA