Question 1

Does Santa Maria have USDA-eligible areas?

Accepted Answer

Parts of Santa Maria and surrounding Santa Barbara County may qualify. Check the USDA eligibility map before making any assumptions about a specific address.

Question 2

What credit score do I need for FHA?

Accepted Answer

You need at least 580 for 3.5% down. Scores between 500 and 579 still qualify but require 10% down.

Question 3

Does USDA have income limits in Santa Barbara County?

Accepted Answer

Yes. USDA caps household income based on county and household size. Santa Barbara County limits can be higher than national averages due to local income levels.

Question 4

Which loan has lower monthly mortgage insurance?

Accepted Answer

USDA's annual guarantee fee is generally lower than FHA's MIP. Over a 30-year loan, that difference adds up. Rates vary by borrower profile and market conditions.

Question 5

Can I use USDA if I already own a home?

Accepted Answer

No. USDA is for primary residence purchases only, and you typically cannot own another adequate home at the time of closing.

Question 6

Which loan closes faster in Santa Maria?

Accepted Answer

FHA generally closes faster. USDA loans require an extra approval from the USDA itself, which adds time to the process.

FHA vs USDA Loans in Santa Maria, CA