Question 1

Is La Habra eligible for USDA loans?

Accepted Answer

Parts of La Habra may qualify, but not all. Check the USDA property eligibility map with your exact address before counting on zero down.

Question 2

Which loan has lower mortgage insurance?

Accepted Answer

USDA mortgage insurance is generally cheaper than FHA's. FHA charges an upfront premium plus annual MIP that stays for the loan's life.

Question 3

Can I use FHA if I earn too much for USDA?

Accepted Answer

Yes. FHA has no income limits. If USDA's household income cap disqualifies you, FHA is still fully available.

Question 4

What credit score do I need for each loan?

Accepted Answer

FHA allows 580 with 3.5% down. USDA typically requires a 640 minimum score, though some lenders may go lower with compensating factors.

Question 5

Which loan closes faster in Orange County?

Accepted Answer

FHA generally closes faster. USDA loans require an extra eligibility review step that can add time to the process.

Question 6

Do both loans allow seller concessions?

Accepted Answer

Yes. FHA allows up to 6% in seller concessions. USDA also allows seller concessions, which can help cover closing costs.

FHA vs USDA Loans in La Habra, CA