Question 1

Does Montague qualify for USDA loans?

Accepted Answer

Most of Montague and Siskiyou County falls within USDA-eligible rural areas. Confirm the specific property address on the USDA eligibility map before applying.

Question 2

Which loan has lower monthly costs?

Accepted Answer

USDA's annual mortgage insurance rate is lower than FHA's. Over a 30-year loan, that gap adds up to real savings. Rates vary by borrower profile and market conditions.

Question 3

Can I use USDA if I have a higher income?

Accepted Answer

USDA caps household income by county and family size. If you're over the limit for Siskiyou County, FHA has no income ceiling and remains a solid option.

Question 4

What credit score do I need for each loan?

Accepted Answer

FHA approves borrowers at 580 for the 3.5% down option. USDA typically requires 640 for automated approval through most lenders.

Question 5

Which loan closes faster?

Accepted Answer

FHA generally closes faster. USDA loans require an extra step — a review by the USDA Rural Development office — which can add time to closing.

Question 6

Do both loans allow seller concessions?

Accepted Answer

Yes. Both FHA and USDA allow sellers to contribute toward closing costs. This can reduce your cash needed at closing on either program.

FHA vs USDA Loans in Montague, CA