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in Yreka, CA
Both FHA and USDA loans help buyers with limited savings, but they work differently in Yreka. FHA requires 3.5% down and works anywhere, while USDA offers zero down but only in eligible rural areas.
Most of Siskiyou County qualifies for USDA financing, which changes the math for local buyers. If you meet the income limits, you can finance 100% and skip the upfront cash FHA requires.
FHA loans require 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579. You pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% to 0.85%.
FHA works on any property type in any location, including manufactured homes on permanent foundations. There's no income cap, so higher earners who want the low down payment option can still qualify.
USDA loans require zero down payment if you meet area income limits and buy in an eligible zone. For Siskiyou County, most areas outside city centers qualify, including much of Yreka's surrounding communities.
You'll pay a 1% upfront guarantee fee and 0.35% annual fee, both lower than FHA. USDA requires 640 minimum credit in most cases, though some lenders go to 620 with compensating factors.
The biggest split is down payment versus eligibility. USDA's zero down beats FHA's 3.5%, but you must fall under income thresholds and buy in approved rural areas. FHA accepts anyone regardless of income or exact location.
USDA's annual mortgage insurance runs 0.35% compared to FHA's 0.55% to 0.85%. On a $300,000 loan, that's $1,050 per year for USDA versus $1,650 to $2,550 for FHA. Both charge upfront fees around 1% to 1.75%.
Check USDA eligibility first using the USDA property map. If your target home qualifies and your household income stays under the limit, USDA wins on both down payment and monthly cost. Most of rural Siskiyou County makes the cut.
Go FHA if you're over income limits, buying in a non-eligible zone, or your credit sits below 620. FHA also processes faster since fewer lenders handle USDA, which matters in competitive situations or tight closing timelines.
Much of Yreka and surrounding Siskiyou County qualifies. Check the USDA eligibility map with your specific address since some developed areas don't make the cut.
Limits vary by household size and change annually. A family of four typically maxes out around $103,500, but check current USDA guidelines for exact figures.
Yes, but USDA's zero down and lower mortgage insurance make it the better financial choice. FHA makes sense only if you need faster processing.
USDA runs $50-$125 lower per month on a $300,000 loan due to cheaper mortgage insurance. The zero down payment also eliminates the need for upfront cash.
FHA caps seller concessions at 6% of purchase price. USDA allows up to 6% as well, covering closing costs and prepaid items in both programs.