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in Mountain House, CA
Mountain House sits in a unique spot — suburban growth paired with USDA eligibility in parts of San Joaquin County. Both FHA and USDA loans offer low-barrier entry, but they target different buyer profiles.
FHA works almost anywhere with just 3.5% down. USDA requires zero down but limits where you can buy and how much you earn. Your income and exact property location will determine which path opens up.
FHA loans let you buy with 3.5% down if your credit score hits 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that stick around for the loan's life on most purchases.
These loans work for any eligible property in Mountain House — condos, single-family homes, even new construction. Sellers can contribute up to 6% toward your closing costs, which helps stretch your cash further.
USDA loans require zero down payment but restrict both location and income. The property must sit in a USDA-eligible zone, and your household income can't exceed 115% of the area median — currently around $113,000 for San Joaquin County.
You'll pay a 1% upfront guarantee fee and 0.35% annual fee. Those fees run lower than FHA insurance. The catch: underwriting takes longer because USDA adds a second approval layer after the lender clears you.
Down payment splits them cleanly — FHA needs 3.5%, USDA needs nothing. But USDA's income cap disqualifies many dual-income households in the Bay Area commuter belt, even if the property qualifies.
Location matters more for USDA. Parts of Mountain House may fall outside eligible zones as the city grows. FHA doesn't care about property location or your income level, just the home's condition and your ability to repay.
Pick USDA if you're under the income limit and buying in an eligible zone. Saving that 3.5% down payment can mean closing 6-12 months earlier. Just confirm the property address qualifies before you start shopping.
Go FHA if you earn over $113,000, want faster closing, or the home sits outside USDA boundaries. You'll need down payment funds, but you gain flexibility on property choice and won't wait for dual approval.
No. USDA restricts loans to properties in eligible rural zones. Parts of Mountain House qualify, but you must verify the specific address with your lender before making an offer.
USDA typically runs cheaper monthly because you skip the down payment and pay lower insurance fees. But FHA may offer better rates depending on your credit profile. Rates vary by borrower profile and market conditions.
You're locked out of USDA. Switch to FHA, which has no income cap. The 3.5% down requirement is the only added hurdle.
FHA closes faster. USDA requires lender approval plus a second review from USDA, adding 1-2 weeks to the process.
USDA lets you drop insurance after reaching 80% equity if rates improve. FHA locks you into insurance for the loan's life unless you refinance to conventional.