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in Victorville, CA
Victorville homebuyers have two strong government-backed loan options. FHA and USDA loans both help people buy homes with less money down than conventional mortgages require.
The right choice depends on where you want to buy and your financial situation. Understanding each program helps you save money and find the best fit for your homeownership goals.
FHA loans are government-insured mortgages from the Federal Housing Administration. They require as little as 3.5% down and accept credit scores as low as 580 for minimum down payment.
These loans work anywhere in Victorville and San Bernardino County. You can use them for single-family homes, condos, and multi-unit properties up to four units.
FHA loans require both upfront and annual mortgage insurance premiums. This insurance protects lenders and allows them to offer favorable terms to borrowers with smaller down payments.
USDA loans are government-backed mortgages requiring zero down payment. They help eligible rural and suburban homebuyers who meet income limits purchase homes with no money down.
Not all Victorville properties qualify for USDA financing. The home must be in an approved rural or suburban area, and your household income cannot exceed program limits.
USDA loans charge an upfront guarantee fee and annual fee similar to mortgage insurance. Rates vary by borrower profile and market conditions, but they often compete well with FHA rates.
The biggest difference is the down payment: USDA requires nothing down while FHA requires 3.5% minimum. For a $350,000 home, that means $0 versus $12,250 upfront.
Location matters significantly with USDA loans but not FHA loans. USDA loans only work in designated eligible areas, while FHA loans work anywhere in Victorville and surrounding communities.
Income limits restrict USDA eligibility but FHA has no such restrictions. USDA also typically charges lower annual fees than FHA mortgage insurance premiums over the loan term.
Choose USDA if you have little savings for down payment and the property is in an eligible area. You must meet income requirements, but the zero-down benefit is substantial for qualified buyers.
Choose FHA if the property is outside USDA-eligible areas or your income exceeds USDA limits. FHA offers more flexibility on property location and works well for buyers with modest down payment savings.
Both programs help Victorville buyers get into homes affordably. A qualified mortgage broker can check property eligibility and compare your costs under each program before you decide.
FHA loans work on any eligible property throughout Victorville. USDA loans only work in designated rural and suburban areas, so property location determines eligibility.
USDA loans typically have lower monthly costs due to no down payment and lower annual fees. However, rates vary by borrower profile and market conditions for both programs.
Only USDA loans have household income limits based on area median income. FHA loans have no income restrictions, making them available to all qualified borrowers regardless of earnings.
FHA typically has broader eligibility since it lacks income and location restrictions. USDA offers better terms but requires meeting both geographic and income requirements.
You can refinance between programs if you meet eligibility requirements. Many Victorville homeowners refinance to reduce costs or eliminate mortgage insurance when they build enough equity.