Question 1

Is Montclair eligible for USDA loans?

Accepted Answer

Most of Montclair is not USDA-eligible. It's an urban city. Check the official USDA map or ask us to pull it for your address.

Question 2

Which loan has lower mortgage insurance?

Accepted Answer

USDA's annual fee is lower than FHA's monthly MIP. Over time, USDA borrowers pay less for mortgage insurance.

Question 3

Can I use FHA or USDA for an investment property?

Accepted Answer

No. Both programs require the home to be your primary residence. Neither works for rentals or second homes.

Question 4

What credit score do I need for USDA?

Accepted Answer

Most USDA lenders want 640 or higher. FHA allows 580. If your credit is below 640, FHA is the stronger path.

Question 5

Do both loans have income limits?

Accepted Answer

USDA does. FHA does not. USDA caps income at 115% of the area median. FHA has no income ceiling.

Question 6

Which loan is faster to close?

Accepted Answer

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

FHA vs USDA Loans in Montclair, CA