Question 1

Does Santa Rosa qualify for USDA loans?

Accepted Answer

Most of Santa Rosa proper does not. Outlying Sonoma County areas may qualify. Always check the USDA eligibility map for the specific property address.

Question 2

Which loan has lower mortgage insurance?

Accepted Answer

USDA mortgage insurance is generally cheaper than FHA's over the life of the loan. FHA charges both upfront and monthly premiums.

Question 3

What credit score do I need for each loan?

Accepted Answer

FHA accepts scores as low as 500 with 10% down, or 580 with 3.5% down. Most USDA lenders want a 640 or higher.

Question 4

Is there a down payment required for USDA?

Accepted Answer

No. USDA loans require zero down payment. That's the program's biggest advantage for qualifying buyers in eligible areas.

Question 5

Do USDA loans have income limits in Sonoma County?

Accepted Answer

Yes. USDA sets household income caps by county and family size. Sonoma County limits are higher than many California counties due to area income levels.

Question 6

Can I use either loan for a multi-unit property?

Accepted Answer

FHA allows up to 4 units if you occupy one. USDA is limited to single-family primary residences only.

FHA vs USDA Loans in Santa Rosa, CA