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in Auburn, CA
Auburn sits in that sweet spot where both FHA and USDA loans can work, depending on your exact location. Some Auburn properties qualify for USDA's zero-down program, while others fall outside the eligible map.
Both are government-backed loans that help buyers with smaller down payments. The right choice depends on where you're buying, your income, and how much cash you have saved.
FHA loans work anywhere in Auburn with just 3.5% down and credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that add about $200-300 monthly on typical loan amounts.
This is the workhorse loan for buyers who need flexible credit underwriting. Income limits don't apply, so higher earners can use it too. Sellers can contribute up to 6% toward your closing costs.
USDA loans offer zero down payment if you're buying in eligible rural areas around Auburn. Parts of greater Auburn qualify, but you need to check the USDA map for your specific address. Credit minimums run around 640 for automated approval.
You must meet income limits based on household size. For Placer County, that's typically under $103,500 for a family of four. There's a 1% upfront guarantee fee and annual fees around 0.35%, lower than FHA's ongoing costs.
The biggest split is down payment and location. USDA gives you zero down but restricts where you can buy. FHA requires 3.5% down but works on any property in Auburn. USDA saves you money monthly with lower mortgage insurance, but only if your income qualifies.
FHA closing times run 30-45 days typically. USDA adds another week or two because of the extra rural eligibility verification. FHA allows higher debt ratios, which helps if you're carrying car payments or student loans.
Check the USDA eligibility map first. If your Auburn property qualifies and your household income is under the limit, USDA saves you the down payment and cuts monthly costs. That's a major advantage if you're cash-tight but have stable income within range.
Go FHA if you're buying in non-eligible Auburn areas, earn above USDA limits, or need the higher debt ratio flexibility. FHA also makes sense if you want faster closing or if your credit is below 640. We run both options on every Auburn deal to show you the real numbers.
Some Auburn addresses qualify, others don't. USDA eligibility depends on population density, not city boundaries. We check the exact address before you start house hunting.
USDA typically costs less monthly due to lower mortgage insurance. Rates vary by borrower profile and market conditions, but insurance differences alone save $100-150 monthly on typical loan amounts.
Yes. FHA charges 0.55%-0.85% annually plus 1.75% upfront. USDA charges 0.35% annually plus 1% upfront, making it cheaper over time.
Limits vary by household size. Most Auburn buyers need to stay under $103,500 for a four-person household, but we verify current limits when you apply.
Yes. FHA allows up to 6% seller concessions. USDA allows up to 6% as well, which helps cover your closing costs and upfront fees.
FHA typically closes in 30-45 days. USDA adds 7-14 days for rural eligibility verification and income limit review through the USDA system.