Question 1

Is Lincoln, CA eligible for USDA loans?

Accepted Answer

Parts of Lincoln may qualify. Check the USDA eligibility map at eligibility.sc.egov.usda.gov — eligibility can change by street.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA allows down to 580 for 3.5% down. USDA typically requires 640 or higher for automated approval.

Question 3

Do USDA loans have income limits in Placer County?

Accepted Answer

Yes. USDA sets household income limits by county and family size. Exceed the limit and you're not eligible regardless of credit.

Question 4

Which loan has lower monthly mortgage insurance?

Accepted Answer

USDA's annual fee is generally lower than FHA's monthly MIP. Run both scenarios — the difference adds up over time.

Question 5

Can I use either loan on a new construction home in Lincoln?

Accepted Answer

Yes, both FHA and USDA can finance new construction. Each has specific appraisal and inspection requirements for new builds.

Question 6

Can I refinance from FHA into USDA later?

Accepted Answer

No. USDA refinances are only available to existing USDA borrowers. You cannot switch from FHA to USDA after closing.

FHA vs USDA Loans in Lincoln, CA