Question 1

Is San Juan Capistrano eligible for USDA loans?

Accepted Answer

Parts of the area may qualify, but many neighborhoods do not. USDA eligibility maps change — we check current boundaries on every deal.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA accepts 580 with 3.5% down. USDA typically requires 640 or higher.

Question 3

Which loan has lower monthly costs?

Accepted Answer

USDA mortgage insurance runs lower than FHA's. Over 30 years, that difference adds up significantly.

Question 4

Can I use USDA if my income is high?

Accepted Answer

No. USDA sets household income limits by county and family size. Exceed the cap and you're out — FHA has no such restriction.

Question 5

Do both loans require mortgage insurance?

Accepted Answer

Yes. Both require mortgage insurance, but the cost structure differs. USDA's annual fee is generally lower than FHA's monthly premium.

Question 6

Which loan closes faster in practice?

Accepted Answer

FHA tends to move faster. USDA requires an extra eligibility review that can add time to the process.

FHA vs USDA Loans in San Juan Capistrano