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in Manteca, CA
Manteca sits in a unique spot where both FHA and USDA loans work for most properties. Both offer low barriers to entry, but they solve different problems for San Joaquin County buyers.
FHA focuses on low down payments with flexible credit. USDA eliminates the down payment entirely but restricts who qualifies and where you can buy.
FHA loans let you buy with 3.5% down and a 580 credit score. You pay mortgage insurance for the life of the loan on most purchases, which adds $150-300 monthly on a typical Manteca home.
There's no income cap and no property location restrictions. FHA works anywhere in Manteca, from downtown condos to northeast single-family neighborhoods.
USDA loans require zero down payment and accept 640 credit scores. You pay a lower annual mortgage insurance fee that can drop off after equity builds, unlike FHA's permanent premium.
Most of Manteca qualifies as USDA-eligible, but you must meet household income limits. For San Joaquin County, income caps range from $103,500 to $136,700 depending on household size.
Down payment separates these most clearly. FHA needs 3.5% saved; USDA needs nothing down but restricts your income and buying location.
Mortgage insurance costs less with USDA long-term. FHA charges 0.55% annually for the loan life. USDA charges 0.35% annually and may cancel once you hit 20% equity through payments or appreciation.
Choose USDA if you're buying in an eligible Manteca zone and your household income falls under county limits. Saving 3.5% down often takes 12-18 months for San Joaquin buyers—USDA lets you skip that wait.
Choose FHA if you earn above USDA income caps or want flexibility on property location. FHA also processes faster since it doesn't require USDA rural development review, which adds 2-3 weeks to closing timelines.
Yes, most residential areas in Manteca qualify as USDA-eligible zones. Downtown and some densely developed pockets don't qualify, but neighborhoods northeast and south of Highway 120 typically work.
Income caps range from $103,500 for 1-4 person households to $136,700 for 5-8 person households. USDA counts all adult household income, not just borrowers on the loan.
FHA works for condos if the complex is FHA-approved. USDA rarely approves condos since most sit in ineligible zones or exceed density requirements.
USDA typically costs $100-150 less monthly due to zero down payment and lower mortgage insurance. FHA requires more upfront cash but has no income restrictions.
FHA averages 30-35 days to close. USDA adds 2-3 weeks for rural development review, pushing timelines to 45-50 days in most cases.