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in Dunsmuir, CA
Dunsmuir sits in rural Siskiyou County, which makes it eligible for USDA financing. That zero-down option competes directly with FHA's 3.5% down payment.
Most buyers here qualify for both programs. Your choice comes down to upfront cash, monthly payment comfort, and property location within city limits.
FHA loans require 3.5% down with a 580 credit score. You pay an upfront mortgage insurance premium of 1.75%, then 0.55%-0.80% annually based on loan amount and term.
These loans work anywhere in Dunsmuir regardless of location. No income caps exist, so higher earners still qualify if debt ratios fit.
Sellers can contribute up to 6% toward closing costs. Gift funds cover your entire down payment if a family member provides them.
USDA loans require zero down payment. You pay a 1% upfront guarantee fee and 0.35% annually, which costs less than FHA mortgage insurance.
Your household income cannot exceed 115% of area median income. For Siskiyou County, that cap sits around $103,000 for most household sizes.
The property must fall within USDA-eligible rural zones. Parts of Dunsmuir qualify, but you need to verify the specific address before proceeding.
The down payment gap is the obvious split. USDA saves you 3.5% upfront, which equals $7,000 on a $200,000 home FHA would require.
Monthly costs favor USDA too. That 0.35% annual fee beats FHA's 0.55%-0.80% on identical loan amounts, saving roughly $50-$90 monthly.
FHA approves faster because no income verification against area limits happens. USDA adds 2-4 weeks to underwriting while the rural development office confirms eligibility and property location.
Choose USDA if your household income falls under limits and the property sits in an eligible zone. Zero down plus lower monthly insurance beats FHA math every time.
Pick FHA if you earn too much for USDA, need to close fast, or the property falls outside rural boundaries. The 3.5% down payment still beats conventional 5-10% minimums.
Run both scenarios with actual numbers. Some buyers prefer FHA's predictability over USDA's eligibility uncertainty, especially when competing in multiple offer situations.
Not automatically. The property address must fall within USDA-designated rural zones. Check eligibility at the USDA property lookup tool before making offers.
USDA costs less monthly due to 0.35% mortgage insurance versus FHA's 0.55%-0.80%. On a $200,000 loan, that saves $50-$90 per month.
Yes. FHA permits 6% seller contributions, USDA allows 6% as well. Both let sellers cover most closing costs if negotiated.
Siskiyou County caps household income around $103,000 for most family sizes. This limit adjusts based on household members and gets updated annually.
FHA typically closes 2-4 weeks faster. USDA requires rural development office review of property eligibility and income verification against area limits.