Question 1

Is Isleton eligible for USDA loans?

Accepted Answer

Isleton's rural character makes it a strong candidate for USDA eligibility. Confirm the specific address on the USDA eligibility map before applying.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down, or 500 with 10% down. USDA typically wants 640 or higher for automated underwriting approval.

Question 3

Does USDA really require zero down?

Accepted Answer

Yes — USDA's guaranteed loan program has no down payment requirement. You still pay closing costs, though some can be financed or covered by seller concessions.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA's annual fee runs lower than FHA's monthly MIP. Over a 30-year loan, that difference adds up significantly.

Question 5

Are there income limits for FHA loans?

Accepted Answer

No. FHA has no income ceiling. USDA does — limits vary by county and household size, so check Sacramento County's current caps.

Question 6

Can I use either loan for a fixer-upper?

Accepted Answer

FHA has a 203k rehab option for properties needing work. USDA requires the home to meet minimum condition standards at closing.

FHA vs USDA Loans in Isleton, CA