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in Truckee, CA
Truckee sits in Nevada County — and that matters for your loan options. USDA eligibility depends on location, and parts of this area qualify.
Both loans are government-backed with low entry costs. But they work very differently. Knowing which fits your situation saves time and money.
FHA loans accept credit scores as low as 580 with 3.5% down. Drop below 580 and you'll need 10% down — but approval is still possible.
You can use FHA on most property types in Truckee. There's no geographic restriction. Mortgage insurance is required for the life of the loan.
USDA loans require zero down payment. For buyers in eligible Truckee areas, that's a major advantage — especially with high Sierra Nevada home prices.
Income limits apply. USDA is designed for moderate-income buyers, not high earners. The property must also be in a USDA-designated rural zone.
The biggest split is down payment. USDA is zero down. FHA is minimum 3.5%. On a $600,000 home, that's $21,000 out of pocket with FHA.
USDA mortgage insurance costs less than FHA over time. But USDA has strict income caps and geographic rules. FHA has neither.
If you meet USDA income limits and the property is eligible, USDA wins on cost. Zero down and lower mortgage insurance beats FHA on paper.
If your income is too high for USDA, or the property isn't in an eligible zone, FHA is your path. It's more flexible — and still a strong option.
Parts of Truckee and Nevada County fall in USDA-eligible zones. Check the USDA property eligibility map or ask us to run it for your address.
FHA requires 580+ for 3.5% down. USDA typically requires 640+ with most lenders, though guidelines vary.
No. FHA has no income cap. USDA does — limits vary by household size and county.
USDA usually wins. Its mortgage insurance rates are lower than FHA's. Rates vary by borrower profile and market conditions.
No. Both FHA and USDA require the home to be your primary residence. Investment or vacation properties don't qualify.
FHA mortgage insurance lasts the life of the loan if you put less than 10% down. USDA annual fees continue until you refinance or pay off.