Question 1

Is Livingston eligible for USDA loans?

Accepted Answer

Many areas in Merced County qualify. Check the USDA eligibility map for the specific address before assuming it qualifies.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down. USDA lenders typically want 640+, though some go lower depending on the file.

Question 3

Can I use USDA if I have a high income?

Accepted Answer

No. USDA caps household income based on county and family size. Exceed the limit and you're out of the program.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA generally costs less in mortgage insurance than FHA. That difference adds up over the life of the loan.

Question 5

Do both loans allow seller concessions?

Accepted Answer

Yes. Both FHA and USDA allow sellers to contribute toward closing costs, which can reduce your cash needed to close.

Question 6

Can I buy a multi-unit property with these loans?

Accepted Answer

FHA allows up to 4 units if you live in one. USDA is limited to single-family homes only.

FHA vs USDA Loans in Livingston, CA