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in Montague, CA
Montague sits in rural Siskiyou County, which means you have access to both FHA and USDA loans. Most borrowers here qualify for both programs, so the decision comes down to down payment, upfront costs, and long-term monthly payments.
FHA loans work anywhere in Montague with just 3.5% down. USDA loans require zero down but come with income limits and property eligibility rules that matter in rural areas.
FHA loans let you buy with 3.5% down and a 580 credit score. You pay upfront mortgage insurance (1.75% of the loan) and monthly MI that stays for the life of most loans.
There are no income limits or property location rules with FHA. You can buy any eligible home in Montague regardless of whether it's in town or on acreage outside city limits.
USDA loans require zero down payment for eligible properties in Montague. You need a 640 credit score and your household income must fall below area limits, which USDA sets based on county median income.
You pay an upfront guarantee fee (1% of loan amount) and annual fees that work like mortgage insurance. The property must meet USDA rural designation rules, though most of Montague qualifies.
The biggest split is down payment versus income limits. USDA saves you the 3.5% down payment, which matters on a $350,000 purchase where FHA needs $12,250 upfront and USDA needs zero.
FHA charges higher monthly mortgage insurance than USDA. On that same $350,000 loan, FHA MI runs about $243 monthly versus $175 for USDA. FHA also has stricter appraisal standards that can flag rural properties with well water or septic issues.
Choose USDA if you have limited savings and your household income falls under county limits. Most borrowers in rural Siskiyou County qualify income-wise, and zero down beats saving up 3.5%.
Pick FHA if you earn above USDA income caps, need faster closing timelines, or want certainty that your property qualifies. FHA also works better if you're buying a fixer-upper that might not meet USDA condition standards.
Most of Montague qualifies as USDA-eligible rural area. Check specific addresses with a broker since some newer developments may fall outside designated zones.
Income limits vary by household size and change annually. A family of four typically needs to stay under 115% of county median income to qualify.
Yes, if the home is on a permanent foundation and meets FHA standards. USDA also allows manufactured homes under similar conditions.
USDA typically costs less monthly due to lower mortgage insurance. Factor in zero down payment and USDA often wins for long-term affordability.
USDA adds 1-2 weeks for their underwriting process. FHA typically closes faster since it doesn't require extra government review layers.