Question 1

Is Los Banos eligible for USDA loans?

Accepted Answer

Parts of Los Banos may qualify. USDA eligibility is property-specific. We check the exact address before assuming anything.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down. USDA typically requires 640 with most lenders, though guidelines allow lower.

Question 3

Does USDA have an income limit in Merced County?

Accepted Answer

Yes. USDA sets household income limits by county and family size. Exceeding the cap disqualifies you regardless of the property.

Question 4

Which loan has lower monthly payments?

Accepted Answer

USDA usually wins on monthly cost — zero down means no large loan offset, but lower mortgage insurance helps. Rates vary by borrower profile and market conditions.

Question 5

Can I use gift funds for FHA down payment?

Accepted Answer

Yes. FHA allows 100% of the down payment to come from gift funds. USDA doesn't require a down payment at all.

Question 6

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

Accepted Answer

FHA allows up to 4 units if you occupy one. USDA is limited to single-family primary residences only.

FHA vs USDA Loans in Los Banos, CA