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in Colfax, CA
Colfax sits in Placer County's rural foothills, which means you might qualify for both FHA and USDA financing. Both programs help buyers who don't have 20% down, but they work completely differently.
FHA charges upfront and monthly mortgage insurance regardless of where you buy. USDA offers zero down payment but restricts who qualifies based on income and property location in eligible rural zones.
FHA loans require just 3.5% down with a 580 credit score, or 10% down if your score falls between 500-579. You can use these loans anywhere in Colfax without property location restrictions.
The trade-off is mortgage insurance for the life of the loan on most purchases. Upfront MIP costs 1.75% of your loan amount, then you pay 0.55%-0.85% annually based on loan size and down payment.
USDA loans offer zero down payment financing for properties in eligible rural areas of Placer County. Colfax qualifies as a rural zone, so most homes here are USDA-eligible if they meet property standards.
Income limits restrict who qualifies—your household income must fall below 115% of the area median. USDA charges a 1% upfront guarantee fee and 0.35% annual fee, significantly lower than FHA's ongoing costs.
Down payment separates these programs most clearly. USDA requires nothing down, while FHA needs at least 3.5%. That's $14,000 on a $400,000 home—real money even in Placer County.
Income limits make USDA unavailable to higher earners, but FHA has no income ceiling. USDA's annual mortgage insurance costs 0.35% versus FHA's 0.55%-0.85%, saving you $80-$200 monthly on a $400,000 loan.
Choose USDA if you have minimal cash for closing and your household income qualifies. Zero down means you keep savings for repairs or reserves, and lower annual fees save money long-term.
Pick FHA if you earn above USDA limits, need to close quickly, or want more property flexibility. FHA works on condos and properties USDA might reject for acreage or condition issues common in rural areas.
Most of Colfax sits in USDA-eligible rural zones. We verify property addresses against current USDA maps during pre-qualification.
USDA typically costs less monthly due to 0.35% annual fees versus FHA's 0.55%-0.85%. The savings run $80-200 monthly on median-priced homes.
FHA 203(k) rehab loans work well for fixers. USDA requires homes to be move-in ready at purchase, limiting options on distressed properties.
Household income above 115% of area median makes you ineligible. Limits adjust by household size and county—we check current thresholds during consultation.
USDA adds 10-20 days to closing timelines due to rural development approval steps. FHA typically closes in 30 days with complete documentation.