Loading
Loading
in Hollister, CA
Hollister sits in a pocket of San Benito County where both FHA and USDA loans are live options. That's not true everywhere in California.
Both programs offer low or zero down payment paths. But the eligibility rules are very different. Picking the wrong one costs you money.
FHA loans require 3.5% down with a 580 credit score. Drop to 500-579 and you need 10% down. Most lenders want 580 minimum.
FHA works anywhere — urban, suburban, rural. There are no income caps. The tradeoff is mortgage insurance for the life of the loan.
USDA loans require zero down. That's the headline. For buyers short on cash, that gap between 0% and 3.5% is real money.
USDA has two hard requirements: the property must be in an eligible area, and your household income must fall under county limits. Both must be met.
Local decision guide
Use this comparison to weigh FHA Loans and USDA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Hollister.
Hollister sits in a pocket of San Benito County where both FHA and USDA loans are live options. That's not true everywhere in California.
Both programs offer low or zero down payment paths. But the eligibility rules are very different. Picking the wrong one costs you money.
FHA loans require 3.5% down with a 580 credit score. Drop to 500-579 and you need 10% down. Most lenders want 580 minimum.
The biggest split is down payment. USDA is zero down. FHA is 3.5% minimum. On a $600,000 home, that's $21,000 out of pocket with FHA.
FHA mortgage insurance is front-loaded and annual. USDA has a guarantee fee plus a smaller annual fee. USDA's annual cost usually runs lower.
If your property qualifies for USDA and you're under the income limit, take the USDA loan. Zero down beats 3.5% down every time.
If you earn too much for USDA, or the property doesn't qualify, FHA is the move. It's more flexible on income and works on any home.
Parts of Hollister and surrounding San Benito County may qualify. Check the USDA eligibility map — boundaries change and some addresses surprise people.
USDA sets income limits by county and household size. Check the USDA income eligibility tool directly — limits update periodically.
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.
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.
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.
FHA generally closes faster. USDA loans can take longer due to an extra USDA agency review step that adds time to the process.