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in Lincoln, CA
Lincoln sits in Placer County — and parts of it still qualify for USDA financing. That makes this comparison actually worth having.
Both loans are government-backed with low entry costs. But they work very differently for buyers here.
FHA loans need just 3.5% down with a 580 credit score. Drop to 500 and you can still qualify — but you'll need 10% down.
FHA works on any property in Lincoln. There are no geographic restrictions and no income caps.
USDA loans are zero down. For buyers who qualify, that's a serious advantage over any other government program.
The catch: the property must be in a USDA-eligible area and your household income must stay under the limit for Placer County.
Local decision guide
Use this comparison to weigh FHA Loans and USDA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Lincoln.
Lincoln sits in Placer County — and parts of it still qualify for USDA financing. That makes this comparison actually worth having.
Both loans are government-backed with low entry costs. But they work very differently for buyers here.
FHA loans need just 3.5% down with a 580 credit score. Drop to 500 and you can still qualify — but you'll need 10% down.
Down payment is the biggest split. USDA is zero down. FHA is 3.5% minimum — on a $450,000 home, that's $15,750 out of pocket.
USDA charges an upfront guarantee fee and annual fee. FHA charges an upfront MIP and monthly MIP. Neither is free of mortgage insurance.
If the home is USDA-eligible and your income qualifies, USDA wins on cash to close. Zero down beats 3.5% every time.
FHA is the right call when you're buying in a non-eligible area, your income is too high for USDA, or your credit score is below 640.
Parts of Lincoln may qualify. Check the USDA eligibility map at eligibility.sc.egov.usda.gov — eligibility can change by street.
FHA allows down to 580 for 3.5% down. USDA typically requires 640 or higher for automated approval.
Yes. USDA sets household income limits by county and family size. Exceed the limit and you're not eligible regardless of credit.
USDA's annual fee is generally lower than FHA's monthly MIP. Run both scenarios — the difference adds up over time.
Yes, both FHA and USDA can finance new construction. Each has specific appraisal and inspection requirements for new builds.
No. USDA refinances are only available to existing USDA borrowers. You cannot switch from FHA to USDA after closing.