Question 1

Is Hollister eligible for USDA loans?

Accepted Answer

Parts of Hollister and surrounding San Benito County may qualify. Check the USDA eligibility map — boundaries change and some addresses surprise people.

Question 2

What are the USDA income limits for San Benito County?

Accepted Answer

USDA sets income limits by county and household size. Check the USDA income eligibility tool directly — limits update periodically.

Question 3

Can I use USDA or FHA on a fixer-upper?

Accepted Answer

FHA has a 203k rehab option for fixer-uppers. USDA has limited repair loan options. Standard USDA requires the home to meet livability standards at closing.

Question 4

Which loan has lower monthly mortgage insurance?

Accepted Answer

USDA's annual fee is typically lower than FHA's annual MIP. Run both scenarios with actual loan amounts — the gap matters on larger balances.

Question 5

Do both loans allow seller concessions?

Accepted Answer

Yes. Both FHA and USDA allow seller concessions to cover closing costs. Limits differ, so ask your broker what's allowed on your specific offer.

Question 6

Which loan is faster to close?

Accepted Answer

FHA generally closes faster. USDA loans can take longer due to an extra USDA agency review step that adds time to the process.

FHA vs USDA Loans in Hollister, CA