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in Lodi, CA
Lodi sits in a unique spot for government loan eligibility. Parts of the city qualify for USDA zero-down financing, while FHA works anywhere in San Joaquin County.
Both programs offer easier approval than conventional loans. The right choice depends on where you're buying and how much cash you have for closing.
FHA loans require 3.5% down with credit scores as low as 580. You'll pay upfront mortgage insurance of 1.75% plus monthly premiums for the loan's life.
These loans work throughout Lodi with no location restrictions. They're built for first-time buyers who have modest savings but stable income.
Lenders allow debt-to-income ratios up to 50% in many cases. You can use gift funds for your entire down payment and closing costs.
USDA loans require zero down payment if the property falls in an eligible rural zone. Parts of Lodi qualify, but you need to verify the specific address.
Income limits apply based on household size. A family of four cannot exceed $103,500 in gross annual income for San Joaquin County.
You'll pay a 1% upfront guarantee fee and 0.35% annual fee. Credit requirements are flexible, with many approvals at 620 or above.
Down payment separates these programs most. USDA offers zero down but restricts location and income. FHA charges 3.5% down but approves anyone who qualifies financially.
Monthly mortgage insurance costs less with USDA at 0.35% versus FHA's 0.55-0.85%. Over 30 years on a $400,000 loan, that saves roughly $50,000.
FHA approves lower credit scores and higher debt ratios. USDA takes longer to process because property and income eligibility require extra verification.
Choose USDA if you're buying in an eligible zone with income below $103,500. Zero down and lower insurance premiums make it the cheaper option long-term.
Pick FHA if the property isn't USDA-eligible or your income exceeds limits. It's also faster to close and more forgiving with credit scores below 620.
Run the numbers on both before deciding. We verify USDA eligibility in minutes and can quote both programs side-by-side.
USDA eligibility changes by street. We verify your exact address against current USDA maps in under five minutes during pre-approval.
Yes. You can choose FHA even in USDA zones. Some buyers prefer FHA's faster closing timeline despite the higher down payment.
Yes. FHA and USDA both accept gift funds from family for down payment and closing costs with proper documentation.
USDA typically costs less monthly due to zero down payment and lower mortgage insurance. Total payment depends on interest rate and property taxes.
FHA requires insurance for the loan's life. USDA insurance drops off after 11 years if you put 10% down or more at purchase.