Question 1

Does Dos Palos qualify for USDA loans?

Accepted Answer

Dos Palos is a rural community in Merced County and typically falls within USDA-eligible boundaries. Verify the specific address on the USDA eligibility map.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires a 580 score for 3.5% down. USDA typically requires a 640 score for automated approval.

Question 3

Is USDA really zero down?

Accepted Answer

Yes — USDA offers 100% financing with no down payment required. You still need to cover closing costs unless the seller contributes.

Question 4

Which loan has lower monthly costs?

Accepted Answer

USDA mortgage insurance rates are lower than FHA's. Over a 30-year loan, that gap adds up significantly. Rates vary by borrower profile and market conditions.

Question 5

Can I use either loan to buy a fixer-upper?

Accepted Answer

FHA has a rehab option called the 203k. USDA requires the home to be in decent condition and meet minimum property standards.

Question 6

What are the income limits for USDA in Merced County?

Accepted Answer

USDA sets income limits by household size for each county. Check the current USDA income limit tool or ask us to pull the exact figure for your household.

FHA vs USDA Loans in Dos Palos, CA