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in Etna, CA
Etna sits in rural Siskiyou County, which makes both FHA and USDA loans viable options. Most buyers here qualify for USDA financing based on location alone.
Both programs offer lower barriers than conventional loans. The real question is whether you want zero down with USDA or more property flexibility with FHA.
FHA loans require just 3.5% down with credit scores as low as 580. You pay an upfront mortgage insurance premium of 1.75% plus annual premiums that typically run 0.55% to 0.85%.
These loans work anywhere in Etna regardless of income. They cover most property types including fixer-uppers that meet minimum safety standards.
Loan limits in Siskiyou County are $498,257 for 2024. FHA accepts higher debt-to-income ratios than conventional lenders, often up to 50% with compensating factors.
USDA loans require zero down payment for eligible rural properties. Etna qualifies as a USDA-eligible area, which covers most of Siskiyou County outside incorporated city limits.
You must meet income limits based on household size. For Siskiyou County, most families need to stay under $103,500 annual income, though some census tracts allow higher limits.
USDA charges a 1% upfront guarantee fee plus 0.35% annual fee. That annual cost runs about half what FHA charges, which adds up over 30 years.
Down payment separates these programs most clearly. USDA puts you in a home with no money down while FHA needs 3.5%. On a $400,000 purchase, that's $14,000 out of pocket.
Income matters for USDA but not FHA. If your household earns over the limit, USDA is off the table regardless of credit or savings.
Property eligibility flips the script. FHA works on any property type in Etna while USDA restricts you to eligible rural zones and primary residences only.
Annual mortgage insurance costs less with USDA at 0.35% versus FHA's 0.55% to 0.85%. Over 30 years on $400,000, that saves $48,000 to $120,000.
Choose USDA if you're under the income limit and buying in an eligible zone. The zero down payment and lower fees make it the strongest deal for qualified rural buyers.
Go FHA if you earn too much for USDA or need more property flexibility. It costs more monthly but works anywhere in Etna without location or income restrictions.
Check your exact property address for USDA eligibility before deciding. Some parcels near town boundaries fall outside eligible zones, which forces you into FHA or conventional financing.
FHA works on properties needing minor repairs if they meet safety standards. USDA requires homes to be move-in ready without needed repairs at closing.
Most lenders want 580 minimum for FHA and 620 for USDA. Some USDA lenders accept 580 with strong compensating factors like low debt ratios.
Use the USDA property eligibility map online with your exact address. Most of rural Siskiyou County qualifies but some parcels near town centers don't.
FHA requires mortgage insurance for the life of the loan on 3.5% down loans. USDA annual fees stay for the full term regardless of equity built.
FHA typically closes in 30 days while USDA adds 5-10 days for rural property appraisals. Both require standard title work and underwriting timelines.