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in Roseville, CA
Roseville sits in a unique position for government-backed loans. Parts of Placer County qualify for USDA financing, but most of Roseville proper doesn't meet the rural designation anymore.
Both FHA and USDA loans help buyers with limited cash and less-than-perfect credit. The difference comes down to where you're buying and how much you can put down.
FHA loans require just 3.5% down with a 580 credit score. You'll pay mortgage insurance for the life of the loan unless you refinance, but approval odds are high for borrowers who can't qualify conventional.
These loans work on any property type in any Roseville neighborhood. Sellers sometimes push back on FHA offers because the appraisal standards are strict, but the flexibility on credit and income makes up for it.
USDA loans offer zero down payment financing for eligible buyers. You need to verify income falls within program limits and the property must be in a USDA-approved rural area.
Most of central Roseville doesn't qualify, but outlying areas near Granite Bay or Lincoln might. The upfront guarantee fee is 1%, and annual mortgage insurance runs 0.35% — both lower than FHA.
Down payment is the obvious split: 3.5% for FHA versus nothing for USDA. But location matters more in practice since USDA restricts where you can buy.
FHA mortgage insurance costs more long-term. USDA charges 1% upfront plus 0.35% annual, while FHA hits you with 1.75% upfront and 0.55%-0.80% annual depending on your down payment and loan size.
Income caps only apply to USDA. FHA doesn't care how much you earn as long as your debt ratios work. USDA sets limits based on household size and county median income.
Run the USDA property eligibility map first. If your target area doesn't qualify, FHA is your only government-backed low down payment option.
For buyers who do qualify for USDA, the zero down structure wins if you're tight on cash. But if you can scrape together 3.5%, compare the total costs — FHA might offer better rates through our lenders.
Most Roseville buyers end up with FHA because the city grew too much for USDA designation. The further from downtown you go, the better your USDA odds.
Some outlying areas near Granite Bay and unincorporated Placer County may qualify. Central Roseville is too developed for USDA rural designation.
USDA typically costs less monthly due to lower mortgage insurance. Rates vary by borrower profile and market conditions.
Yes, though you'll need 10% down below 580 credit. Most lenders prefer 620+ for best terms and pricing.
Limits change annually based on household size. A family of four typically needs to stay under 115% of county median income.
USDA insurance drops after 11 years if you put 10%+ down. FHA requires refinancing to eliminate mortgage insurance.