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in Fairfield, CA
Fairfield sits at an interesting intersection for government-backed loans. Parts of Solano County qualify for USDA financing, while FHA works anywhere in the city.
Both programs let you buy with minimal cash down. The right choice depends on where you're shopping and what your income looks like.
FHA loans require 3.5% down if your credit score hits 580. You can close with a 500 score if you put down 10%, though most lenders set their own 580 floor.
Mortgage insurance runs for the loan's life on most FHA loans. You pay 1.75% upfront plus annual premiums between 0.55% and 1.05% depending on your down payment and loan term.
Debt-to-income ratios stretch to 50% with strong compensating factors. FHA accepts non-traditional credit and recent bankruptcies better than conventional programs.
USDA loans require zero down payment in designated rural areas. Parts of Fairfield qualify, particularly properties outside the dense urban core near Travis Air Force Base.
Income caps limit eligibility to 115% of area median income for most households. For Solano County, that typically means $113,000 for a family of four, though limits adjust by household size.
No monthly mortgage insurance exists with USDA loans. You pay a 1% upfront guarantee fee plus 0.35% annual fee, both lower than FHA's structure.
Processing takes longer than FHA. USDA reviews each file twice—once by your lender, once by the Rural Development office. Add two to three weeks to standard timelines.
Down payment separates these programs most dramatically. USDA offers true zero-down financing while FHA requires 3.5% minimum with decent credit.
Location eligibility flips the comparison. FHA works on any Fairfield property. USDA restricts financing to designated areas, and you must verify the address qualifies before making offers.
Income limits only affect USDA borrowers. FHA doesn't cap your earnings. If you exceed Solano County's threshold, FHA becomes your only government-backed option.
Monthly costs favor USDA when you qualify. The 0.35% annual fee beats FHA's 0.55% floor, and USDA's upfront fee of 1% undercuts FHA's 1.75% charge.
Choose USDA if the property qualifies and your income stays under county limits. Saving 3.5% plus lower monthly costs makes a material difference. Run the address through the USDA eligibility map before getting attached to a property.
Pick FHA when you're shopping in established Fairfield neighborhoods that fall outside USDA zones. FHA also works better if your income exceeds limits or you need to close quickly on a competitive listing.
Some borrowers start shopping with USDA in mind, then switch to FHA after finding homes in ineligible areas. Keep both options active early in your search.
No, only properties in designated rural areas qualify. Central Fairfield neighborhoods typically fall outside USDA boundaries while areas toward county edges often qualify.
USDA monthly costs run lower due to 0.35% annual fees versus FHA's 0.55% minimum. Rates vary by borrower profile and market conditions but structure favors USDA.
FHA accepts gifts for the full 3.5% down payment. USDA requires no down payment, though you can use gifts for closing costs.
FHA typically accepts lower credit scores. USDA doesn't publish a minimum but most lenders want 640, while FHA goes to 580 commonly.
Visit the USDA eligibility map and enter the full address. Properties must fall within designated rural zones determined by population density and location.