Question 1

Is Costa Mesa eligible for USDA loans?

Accepted Answer

No. Costa Mesa is not in a USDA-eligible zone. FHA is the government-backed option available here.

Question 2

What credit score do I need for FHA in Costa Mesa?

Accepted Answer

You need at least 580 for 3.5% down. Scores between 500-579 require 10% down.

Question 3

Do FHA loans have income limits?

Accepted Answer

No. FHA has no income caps. USDA does, which is one more reason FHA fits more Costa Mesa buyers.

Question 4

Can I use gift money for an FHA down payment?

Accepted Answer

Yes. FHA allows the full down payment to come from a gift. The donor just needs to sign a gift letter.

Question 5

How does FHA mortgage insurance work?

Accepted Answer

You pay an upfront MIP at closing plus a monthly premium. With less than 10% down, it stays for the life of the loan.

Question 6

Are there FHA loan limits in Orange County?

Accepted Answer

Yes. FHA sets county-level limits each year. Orange County limits are higher than the national baseline. Rates vary by borrower profile and market conditions.

FHA vs USDA Loans in Costa Mesa, CA