Question 1

Does Highland qualify for USDA loans?

Accepted Answer

Parts of Highland may be USDA-eligible, but not all. Run the specific property address through the USDA eligibility map before assuming it qualifies.

Question 2

Which loan has a lower down payment?

Accepted Answer

USDA requires zero down. FHA requires 3.5% with a 580 credit score. USDA wins on upfront cash — if you qualify.

Question 3

Can I use either loan as a first-time buyer?

Accepted Answer

Yes. Both programs are popular with first-time buyers. USDA and FHA both allow gift funds for closing costs.

Question 4

Which loan has cheaper mortgage insurance?

Accepted Answer

USDA's guarantee fees are generally lower than FHA's mortgage insurance premiums. Over a 30-year loan, the difference adds up.

Question 5

Is there an income limit for FHA loans?

Accepted Answer

No. FHA has no income cap. USDA does — limits vary by household size and county. San Bernardino County limits apply here.

Question 6

What credit score do I need for each loan?

Accepted Answer

FHA requires a 580 minimum for 3.5% down. USDA typically requires a 640 score, though some lenders set higher minimums.

FHA vs USDA Loans in Highland, CA