Question 1

Is Lompoc eligible for USDA loans?

Accepted Answer

Parts of Lompoc and surrounding areas qualify. Eligibility is property-specific, so we check each address before assuming.

Question 2

What credit score does USDA require?

Accepted Answer

Most USDA lenders want 640 or higher. FHA is more forgiving, accepting scores down to 580 for the 3.5% down option.

Question 3

Which loan has lower mortgage insurance?

Accepted Answer

USDA's mortgage insurance runs cheaper than FHA's. That means a lower monthly payment at the same loan amount.

Question 4

Do USDA loans have income limits in Santa Barbara County?

Accepted Answer

Yes. USDA sets household income limits by county and household size. Exceeding that limit disqualifies you from the program.

Question 5

Can I use either loan for a condo in Lompoc?

Accepted Answer

FHA approves condos on an approved-project list. USDA is primarily for single-family homes and is rarely used on condos.

Question 6

Which loan closes faster?

Accepted Answer

Both involve government overlays that can slow the process. FHA is typically more familiar to lenders and may move slightly faster.

FHA vs USDA Loans in Lompoc, CA