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in Loomis, CA
Loomis sits in that sweet spot where both FHA and USDA loans work. Most buyers here qualify for either program.
The choice comes down to how much cash you have upfront and whether you hit USDA's income caps. Both offer better rates than conventional loans for borrowers with smaller down payments.
FHA loans require 3.5% down with credit scores as low as 580. You pay upfront mortgage insurance (1.75% of loan amount) plus monthly premiums for the loan's life.
These loans work anywhere in Loomis regardless of income. The property needs to meet basic safety standards but most single-family homes qualify without issues.
Monthly mortgage insurance costs about 0.55% annually on top of your payment. That's $183 per month on a $400,000 loan.
USDA loans require zero down payment in Loomis. Credit requirements are flexible — most borrowers with 640+ scores get approved without manual underwriting.
You must fall below income limits that vary by household size. For Placer County, that's $122,850 for households of 1-4 people in 2024.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee. That monthly cost is $117 on a $400,000 loan — notably less than FHA.
Down payment separates these programs first. FHA needs $14,000 down on a $400,000 home while USDA needs nothing.
USDA's income limits disqualify many Loomis buyers who earn above $122,850. FHA has no income cap — high earners with limited cash use it regularly.
Monthly insurance costs differ by $66 on a $400,000 loan. Over 30 years that's $23,760 more with FHA versus USDA.
FHA closes faster because USDA requires rural eligibility verification. Expect 35-40 days for USDA versus 30 days for FHA.
Pick USDA if you're under the income limit and short on cash. Saving that down payment and paying lower monthly insurance makes a real difference.
Choose FHA if you earn above $122,850 or need to close fast. It also works better for condos and manufactured homes that USDA won't touch.
Both programs beat conventional financing for borrowers with under 10% down. Rates vary by borrower profile and market conditions but government backing typically delivers lower rates than conventional loans.
Yes, Loomis is USDA-eligible. The entire town meets rural designation requirements despite being close to Rocklin and Roseville.
Yes, 100% of your FHA down payment can come from family gifts. USDA also allows gift funds for closing costs since there's no down payment.
The Placer County USDA limit is $122,850 for households of 1-4 people. Families of 5-8 can earn up to $162,165.
No for FHA — insurance stays for the loan's life. USDA's annual fee also remains for 30 years if you put zero down.
FHA appraisals typically come back in 7-10 days. USDA adds rural eligibility verification which can extend timelines by a few days.