Question 1

Is Sand City eligible for USDA loans?

Accepted Answer

Sand City is a small coastal city in Monterey County. USDA eligibility depends on the property address — check the USDA map or ask us to run it.

Question 2

What credit score do I need for FHA?

Accepted Answer

You need at least 580 to put 3.5% down with FHA. Scores between 500-579 require 10% down.

Question 3

Does USDA have a loan limit?

Accepted Answer

USDA doesn't set a hard loan limit the way FHA does. Your income and debt load determine how much you can borrow.

Question 4

Which loan has lower monthly costs?

Accepted Answer

USDA mortgage insurance is generally cheaper than FHA's MIP. Zero down also means a larger loan balance, so run the full numbers.

Question 5

Can I use either loan for a condo in Sand City?

Accepted Answer

FHA has an approved condo list — the project must be FHA-certified. USDA rarely covers condos and has stricter property type rules.

Question 6

Do both loans allow seller concessions?

Accepted Answer

Yes. FHA allows up to 6% in seller concessions. USDA also allows seller-paid closing costs, which helps keep cash out of pocket low.

FHA vs USDA Loans in Sand City, CA