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in Lincoln, CA
Lincoln sits in a unique position for Placer County buyers. Parts of the city qualify for USDA loans, while FHA works anywhere in Lincoln.
Both programs help buyers who can't put 20% down. The real question is whether you want to put 3.5% down with FHA or zero down with USDA.
FHA loans work anywhere in Lincoln with just 3.5% down if your credit is 580 or higher. You'll pay mortgage insurance for the life of the loan unless you refinance later.
Loan limits in Placer County reach $644,000 for FHA in 2024. Credit below 580 means you need 10% down instead.
USDA loans require zero down payment but only work in designated rural areas of Lincoln. You must meet income limits based on household size.
The USDA guarantee fee works like FHA mortgage insurance but costs less. Most Lincoln buyers need to verify their address qualifies before applying.
Down payment separates these programs first. FHA needs 3.5% minimum while USDA takes nothing down if you qualify.
Location matters more with USDA since parts of Lincoln fall outside eligible zones. FHA works everywhere but costs more in monthly insurance premiums.
Run USDA eligibility first if you're buying in Lincoln's outer areas. You save thousands by avoiding a down payment and pay less in monthly insurance.
Choose FHA if your property doesn't qualify for USDA or your income exceeds USDA limits. Most buyers in Lincoln's newer developments end up with FHA since those areas don't qualify for USDA.
No, only certain zones qualify. Most properties near downtown and newer subdivisions fall outside USDA boundaries.
USDA typically costs less monthly due to no down payment and lower insurance fees. FHA payments include higher mortgage insurance premiums.
FHA works for approved condos. USDA generally requires single-family homes, making FHA the better choice for condo buyers.
Both programs accept 580 credit scores through most lenders. Some USDA lenders want 640 minimum for smoother processing.
USDA sets limits based on household size and county median income. Most families earning over $115,000 exceed Placer County limits.