Question 1

Is King City eligible for USDA loans?

Accepted Answer

Parts of King City have qualified historically, but USDA maps update periodically. Verify your specific address on the USDA eligibility site before moving forward.

Question 2

Can I use USDA with a lower credit score?

Accepted Answer

Most USDA lenders want a 640 score for automated approval. FHA accepts 580 with 3.5% down, making it more flexible on credit.

Question 3

Which loan has lower mortgage insurance?

Accepted Answer

USDA's annual fee of 0.35% typically runs lower than FHA's monthly MIP. Rates vary by borrower profile and market conditions.

Question 4

Do both loans allow seller concessions?

Accepted Answer

Yes. Both FHA and USDA allow the seller to cover closing costs. USDA allows up to 6% in concessions — same as FHA.

Question 5

What's the income limit for USDA in Monterey County?

Accepted Answer

USDA income limits adjust by household size and county. Check the current USDA limit for Monterey County — they update annually.

Question 6

Which loan closes faster in practice?

Accepted Answer

FHA generally closes faster. USDA loans sometimes require a second review by the USDA rural development office, which adds time.

FHA vs USDA Loans in King City, CA