Question 1

Does Nevada City qualify for USDA loans?

Accepted Answer

Many addresses in Nevada City fall within USDA-eligible rural zones. Run your specific address through the USDA eligibility map to confirm.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA accepts 580 with 3.5% down or 500 with 10% down. Most USDA lenders require 640 or higher.

Question 3

Can I use USDA if my income is too high?

Accepted Answer

No. USDA has household income limits tied to county and family size. FHA has no income cap at all.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA charges 0.35% annually versus FHA's 0.55%. Over a 30-year loan, that gap adds up significantly.

Question 5

Do both loans allow seller concessions?

Accepted Answer

Yes. FHA allows up to 6% seller contributions. USDA allows up to 6% as well, which can cover closing costs entirely.

Question 6

Which loan closes faster?

Accepted Answer

FHA typically closes faster. USDA loans require an extra approval step through the USDA office, adding days to the timeline.

FHA vs USDA Loans in Nevada City, CA