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in Livingston, CA
Livingston sits in USDA-eligible territory, making it one of the few California cities where you can choose between two government-backed low-down-payment loans. FHA requires just 3.5% down while USDA offers zero down — but each comes with different trade-offs on insurance costs and eligibility.
Most Livingston buyers qualify for FHA by default. USDA adds income caps and stricter property location rules, but the zero down payment can save you years of rent while saving for a conventional loan.
FHA loans require 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% for the life of the loan on most purchases.
FHA works for any income level and most property types in Livingston. You can use gift funds for your entire down payment, and debt-to-income ratios stretch to 50% with compensating factors like steady job history.
USDA loans require zero down payment but limit income to 115% of area median. For Merced County that's roughly $103,000 for a household of four as of 2024. You'll pay a 1% upfront guarantee fee plus 0.35% annually — lower than FHA's ongoing cost.
Properties must sit in USDA-eligible zones, which covers most of Livingston outside commercial corridors. The loan works for primary residences only, and you'll need a 640 credit score minimum with most lenders despite the official 580 floor.
The down payment gap is obvious — USDA's zero versus FHA's 3.5%. But the income cap makes USDA unavailable to roughly 40% of Livingston buyers. If you earn over the limit, FHA is your only government-backed option below 5% down.
USDA's annual fee runs 0.35% versus FHA's 0.55%, saving you about $40 monthly on a $300,000 loan. Over 30 years that's $14,000, but you lose that savings if you earn too much or want a property outside the USDA map boundary.
Choose USDA if you meet the income limit and found a property in an eligible zone. The zero down payment lets you buy now instead of saving for years, and the lower annual fee keeps your payment competitive with conventional loans.
Pick FHA if you earn over the USDA cap, need flexibility on property location, or want faster processing times. FHA approves more property types and doesn't require the rural designation that sometimes disqualifies homes near main roads.
Most of Livingston qualifies, but check the USDA eligibility map before making an offer. Some properties near commercial areas fall outside the boundaries.
USDA typically costs $40-50 less monthly due to lower annual insurance fees. But FHA may win if USDA's income limit forces you to conventional financing instead.
Yes. FHA and USDA both accept gift funds from family for your entire down payment and closing costs. USDA just doesn't need down payment funds.
FHA usually closes 3-5 days faster since it skips the USDA rural designation review. Both take 30-45 days total in normal conditions.
USDA allows removing insurance after 11 years if your balance drops below 80%. FHA requires refinancing to conventional to drop insurance on loans after 2013.