Question 1

Is Shasta Lake eligible for USDA loans?

Accepted Answer

Shasta Lake falls in an area that has qualified for USDA rural loan programs. Confirm the specific property address on the USDA eligibility map before assuming coverage.

Question 2

What are the income limits for USDA in Shasta County?

Accepted Answer

USDA sets income limits by household size and county. Check the current USDA income limit tool for Shasta County — limits adjust periodically.

Question 3

Which loan has lower monthly payments?

Accepted Answer

USDA typically wins on monthly cost due to lower mortgage insurance fees. FHA's MIP runs higher, especially early in the loan.

Question 4

Can I use either loan to buy a fixer-upper?

Accepted Answer

Both programs require the home to meet basic safety and livability standards at closing. Major fixer-uppers usually don't pass the required appraisal.

Question 5

Do both loans require mortgage insurance?

Accepted Answer

Yes. FHA charges an upfront MIP plus monthly premiums. USDA charges a guarantee fee and a smaller annual fee — both are rolled into the loan.

Question 6

What credit score do I need for each loan?

Accepted Answer

FHA allows scores as low as 580 for 3.5% down. Most USDA lenders want a 640 or higher, though some go lower with manual underwriting.

FHA vs USDA Loans in Shasta Lake, CA