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in Sacramento, CA
Both FHA and USDA loans help buyers get in with little money down. But they work very differently — and Sacramento's geography makes that gap matter.
FHA covers properties citywide. USDA requires the home to be in an eligible rural or suburban area. In Sacramento County, that limits your options considerably.
FHA loans require just 3.5% down with a 580 credit score. Drop to 500-579 and you'll need 10% down — but approval is still possible.
FHA mortgage insurance runs for the life of the loan if you put less than 10% down. That's a real cost. Plan for it.
USDA loans require zero down payment. For buyers who qualify, that's the most powerful feature any government loan offers.
The catch: the property must be in a USDA-eligible area, and your household income must fall under the program's limits for Sacramento County.
The biggest split is geography. Most of urban Sacramento does not qualify for USDA. Eligible areas tend to be in the county's outer edges.
USDA also caps household income. FHA has no income ceiling. If you earn more or want to buy inside the city, FHA is likely your only path here.
If you're buying inside Sacramento city limits, stop looking at USDA. The address alone will disqualify you. FHA is your program.
If you're open to outer Sacramento County and your income qualifies, USDA saves you the down payment entirely. That's real money back in your pocket.
Rarely. Most of the city is ineligible. Check the USDA eligibility map before falling in love with a property.
FHA allows up to 4 units if you live in one. USDA is for single-family primary residences only.
USDA's annual guarantee fee is typically lower than FHA's MIP. Over time, that adds up to real savings.
FHA accepts scores as low as 500. Most USDA lenders want 640 or higher for automated approval.
No. FHA has no income ceiling. USDA does — limits vary by household size and county.
FHA generally moves faster. USDA requires an extra approval step from the USDA office, which adds time.