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in Healdsburg, CA
Healdsburg sits in an interesting zone where both FHA and USDA loans work. Most buyers assume USDA only covers rural farmland, but parts of Sonoma County qualify.
Both programs offer low down payments and flexible credit. The right choice depends on your location within Healdsburg and your income level.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay both upfront and monthly mortgage insurance, which adds roughly 0.85% to your rate annually.
These loans work anywhere in Healdsburg. There's no income cap, making them solid for professionals moving to wine country who don't have a huge down payment saved.
USDA loans offer zero down payment financing for eligible properties. You'll still pay a guarantee fee, but it's lower than FHA insurance at roughly 0.35% annually.
The catch is property location and income caps. Your household income must stay below 115% of the county median, which rules out many dual-income earners in expensive Sonoma County.
Down payment is the obvious split: USDA needs zero, FHA wants 3.5%. But USDA's income caps make it unavailable to higher earners, while FHA accepts any income level.
Location matters more than buyers expect. Downtown Healdsburg properties won't qualify for USDA. You need to check the USDA eligibility map before assuming your target home works.
Choose USDA if you're buying in an eligible zone and your income qualifies. The zero down payment and lower insurance make it cheaper overall, assuming you clear both hurdles.
Go with FHA if your property sits outside USDA zones or your income exceeds county limits. FHA works everywhere and accepts higher earners, making it the safer backup when USDA doesn't fit.
No. Downtown Healdsburg doesn't meet USDA's rural definition. You need properties in eligible zones outside the urban core.
USDA mortgage insurance runs about half of FHA's rate. If you qualify, USDA saves money long-term despite requiring zero down.
Yes. FHA charges 0.85% annually, USDA charges 0.35%. Both also have upfront fees rolled into your loan.
FHA accepts 580 minimum. USDA typically wants 640, though some lenders go lower with strong compensating factors.
FHA insurance lasts the loan's life on most mortgages. USDA drops off after 11 years if you put nothing down.