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in Rio Vista, CA
Rio Vista sits in an area where both FHA and USDA loans can work, but they serve different borrowers. FHA requires 3.5% down while USDA offers zero down for qualified buyers.
Both programs have government backing and flexible credit requirements. The key difference comes down to upfront cash versus meeting USDA's income and location rules.
FHA loans work anywhere in Rio Vista with just 3.5% down if your credit score hits 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% to 0.80%.
These loans cap at $766,550 for single-family homes in Solano County. FHA accepts higher debt-to-income ratios than conventional loans and allows gifts for your entire down payment.
USDA loans require zero down payment but only work on properties in USDA-eligible zones. Most of Rio Vista qualifies, but you need to verify each address through USDA's map tool.
Income limits apply based on household size. You'll pay a 1% upfront guarantee fee plus 0.35% annual fee. Credit scores typically need to reach 620 for most lenders.
Down payment is the obvious split. FHA needs 3.5% while USDA needs nothing. But USDA restricts your income and property location while FHA doesn't care about either.
Mortgage insurance costs less with USDA long-term. FHA's annual premium runs 0.55-0.80% while USDA charges just 0.35%. On a $400K loan, that's $1,200 per year in savings.
Pick USDA if you have little cash for closing and earn under the income limits. Check property eligibility first since parts of Rio Vista may not qualify as the town grows.
Choose FHA if you exceed USDA income limits, need faster closing times, or want to buy in any neighborhood. FHA also works better for buyers with credit scores between 580 and 620.
Most of Rio Vista qualifies as USDA-eligible. Verify your specific address on the USDA property eligibility map before making offers.
Income limits vary by household size and update annually. Most households must stay under 115% of area median income to qualify.
Yes, FHA has no income restrictions. You just need 3.5% down and a 580 credit score regardless of what you earn.
USDA typically costs less monthly due to no down payment and lower mortgage insurance. FHA requires more upfront but works anywhere.
Yes, both FHA and USDA allow sellers to cover closing costs. FHA caps concessions at 6% while USDA allows up to 6%.