Question 1

Is Colton eligible for USDA loans?

Accepted Answer

Most of Colton's developed areas are not USDA-eligible. Properties on the rural edges of San Bernardino County may qualify — check the USDA eligibility map.

Question 2

Which loan has lower mortgage insurance costs?

Accepted Answer

USDA's monthly mortgage insurance is lower than FHA's. FHA also charges a higher upfront premium at closing.

Question 3

Do USDA loans have income limits?

Accepted Answer

Yes. USDA sets income limits based on household size and county. FHA has no income cap at all.

Question 4

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down. Most USDA lenders want a 640 or higher. Rates vary by borrower profile and market conditions.

Question 5

Can I use gift funds for an FHA down payment?

Accepted Answer

Yes. FHA allows the full down payment to come from a gift. USDA requires no down payment, so this isn't a factor.

Question 6

Which loan is faster to close in Colton?

Accepted Answer

FHA typically closes faster. USDA loans require an extra eligibility review that can add time to the process.

FHA vs USDA Loans in Colton, CA