Question 1

Is Portola eligible for USDA loans?

Accepted Answer

Most of Portola qualifies as a USDA rural area. Verify the specific address on the USDA eligibility map before assuming.

Question 2

What credit score do I need for each loan?

Accepted Answer

USDA typically requires 640+. FHA accepts 580 with 3.5% down, or 500 with 10% down.

Question 3

Does USDA really require no down payment?

Accepted Answer

Yes — USDA is one of the few true zero-down programs. You still need closing costs, though those can sometimes be rolled in.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA's annual fee is typically lower than FHA's monthly MIP. Over a 30-year loan, that gap adds up. Rates vary by borrower profile and market conditions.

Question 5

Can I use either loan for a fixer-upper in Portola?

Accepted Answer

FHA has a rehab option (203k) for that. USDA requires the home to meet condition standards and doesn't offer a standard rehab version.

Question 6

What are the income limits for USDA in Plumas County?

Accepted Answer

USDA limits depend on household size and county. Check the current USDA income limit tool — limits adjust periodically.

FHA vs USDA Loans in Portola, CA