Question 1

Is Lathrop eligible for USDA loans?

Accepted Answer

Parts of Lathrop may qualify — USDA eligibility is property-specific. Check the USDA map before ruling it out.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down. USDA typically requires 640 through most lenders, though guidelines allow lower.

Question 3

Do USDA loans have income limits in San Joaquin County?

Accepted Answer

Yes. USDA sets household income limits by county and family size. Exceeding the limit disqualifies you regardless of credit.

Question 4

Which loan has lower monthly mortgage insurance?

Accepted Answer

USDA's annual fee is generally lower than FHA's MIP. Over time, that difference adds up to real savings.

Question 5

Can I use either loan for a new construction home?

Accepted Answer

Both programs allow new construction. USDA has stricter property standards — the home must meet rural development guidelines.

Question 6

Which loan closes faster in practice?

Accepted Answer

FHA typically closes faster. USDA loans require a second approval from the USDA office, which adds processing time.

FHA vs USDA Loans in Lathrop, CA