Loading
in Truckee, CA
Truckee sits in a unique spot for government loan programs. Parts of the area qualify for USDA's zero-down option, while FHA works anywhere in town.
Both programs help buyers with limited cash or rebuilding credit. The difference comes down to location, income limits, and how much you can put down.
FHA loans require 3.5% down with credit scores as low as 580. You pay an upfront mortgage insurance premium plus monthly PMI for the loan's life.
These loans work on any property type in Truckee—condos, single-family homes, or townhouses. No income caps, though you need to prove debt-to-income under 43% typically.
USDA loans require zero down payment if your property falls in an eligible rural zone. Many areas around Truckee qualify, but you need to verify the specific address.
Income can't exceed 115% of the area median for Nevada County. You'll pay a lower upfront guarantee fee than FHA, and monthly insurance drops off once you hit 80% equity.
Down payment separates these programs first. USDA offers zero down, FHA needs 3.5%. That's $21,000 less cash needed on a $600,000 home with USDA.
USDA restricts both location and income. FHA only cares about your credit and debt ratios. USDA's monthly insurance eventually cancels, while FHA's stays for life on loans over 90% LTV.
Choose USDA if your target property qualifies and your household income falls within limits. You'll save thousands upfront and pay less insurance long-term.
Go FHA if you're looking at properties outside USDA zones or your income exceeds the cap. FHA also closes faster since there's no rural designation to verify.
No. USDA designates specific zones as rural-eligible. Many Truckee-area properties qualify, but you must verify each address on the USDA eligibility map before making offers.
USDA typically costs less monthly due to lower insurance premiums. FHA charges 0.85% annual MIP while USDA charges 0.35% for most borrowers.
Only if you'll use it as your primary residence. Both FHA and USDA prohibit second homes or vacation properties under their programs.
Limits change annually and vary by household size. For 2024, most families can't exceed $103,500 to qualify in Nevada County's USDA zones.
FHA usually closes quicker. USDA adds time for rural designation verification and income documentation review, often adding 5-10 days to closing timelines.