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in Chula Vista, CA
Most Chula Vista buyers assume FHA is their only low down payment option. USDA loans offer zero down in eligible zones, but the fine print matters.
Both programs help borrowers who lack large cash reserves. Understanding which neighborhoods qualify and what income limits apply determines which loan actually works.
FHA loans work anywhere in Chula Vista with just 3.5% down. You need a 580 credit score minimum and can finance up to $1,149,825 in San Diego County.
Upfront mortgage insurance costs 1.75% of the loan amount, plus monthly premiums for the loan's life. This makes FHA more expensive long-term than conventional loans, but easier to qualify for upfront.
USDA loans require zero down payment but only work in designated rural areas. Most of Chula Vista's urban core doesn't qualify, though some eastern neighborhoods do.
Income limits cap eligibility at $127,650 for most households in San Diego County. The upside: no down payment and lower mortgage insurance than FHA at 0.35% annually after a 1% upfront fee.
Down payment separates these loans first. FHA needs 3.5% cash, USDA needs zero but restricts where you can buy.
Income matters only for USDA. Exceed $127,650 household income and you're automatically disqualified, regardless of property location. FHA has no income caps but charges higher mortgage insurance that sticks for the loan's entire term.
Check USDA eligibility maps first. If your target property qualifies and your income stays under the cap, zero down beats 3.5% down every time.
Most Chula Vista buyers land in FHA territory because the city's built-out core doesn't meet USDA's rural definition. If you're looking at eastern areas near Otay Lakes or Eastlake, verify USDA eligibility before assuming FHA is your only path.
Eastern areas near Otay Lakes and some Eastlake zones may qualify. Most of the urban core from Third Avenue to I-805 doesn't meet USDA's rural criteria.
No. San Diego County's USDA income limit caps most households at $127,650, and exceeding it disqualifies you regardless of the property location.
Not with 3.5% down. You pay monthly premiums for the entire loan term unless you refinance into a different loan type later.
USDA typically costs less monthly due to lower mortgage insurance rates. FHA's permanent insurance increases your payment for 30 years.
FHA yes, if the condo project is FHA-approved. USDA rarely works for condos and focuses on single-family homes in eligible zones.