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in Vacaville, CA
Both FHA and USDA loans help Vacaville buyers who need government backing to qualify. The right choice depends on where in Solano County you're buying and how much cash you have.
FHA works anywhere in Vacaville with just 3.5% down. USDA requires zero down but limits which neighborhoods qualify based on USDA rural designation maps.
FHA loans work in any Vacaville neighborhood with credit scores as low as 580. You need 3.5% down plus closing costs, and the program allows high debt-to-income ratios up to 57%.
FHA charges an upfront mortgage insurance premium of 1.75% plus annual premiums between 0.55% and 0.85% depending on your down payment. These premiums last the life of the loan if you put down less than 10%.
USDA loans require zero down payment but only work in eligible rural and suburban zones. Parts of Vacaville qualify while others don't, and household income can't exceed 115% of the county median.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee. The annual fee is lower than FHA and can be removed through refinancing once you hit 20% equity.
Location determines which program works. USDA maps show many Vacaville neighborhoods qualify, but newer developments and areas closer to major employment centers often don't meet the rural designation.
Income matters more with USDA since Solano County limits cap your household earnings. FHA has no income ceiling, making it the default for buyers who earn too much for USDA or want properties in non-eligible zones.
Run USDA eligibility first. If your target property qualifies and your income stays under county limits, zero down beats 3.5% down every time. You'll also pay less in ongoing mortgage insurance.
Choose FHA when USDA won't work due to location or income. You'll need to bring down payment funds, but you gain flexibility to buy anywhere in Vacaville and compete for properties without USDA appraisal delays.
No. USDA designates specific zones as eligible based on population density. Many Vacaville areas qualify, but you need to check the USDA property eligibility map before making offers.
Household income can't exceed 115% of the county median. The exact dollar amount updates annually and varies by household size, so verify current limits before applying.
USDA lets you refinance out of the guarantee fee once you hit 20% equity. FHA mortgage insurance stays for the loan's life unless you put down 10% or more initially.
FHA typically closes quicker. USDA appraisals take longer due to stricter property standards and the need for USDA underwriting approval on top of lender approval.
Yes. Both FHA and USDA allow sellers to contribute up to 6% toward buyer closing costs, which helps reduce your cash needed at closing.