Question 1

Can I use a USDA loan to buy in downtown Sonoma?

Accepted Answer

It depends on the address. Dense urban zones often don't qualify. Check the USDA eligibility map before assuming.

Question 2

Which loan has lower monthly payments?

Accepted Answer

USDA typically runs lower. Its annual mortgage insurance rate is less than FHA's monthly MIP. Rates vary by borrower profile and market conditions.

Question 3

Do USDA income limits apply to just the borrowers?

Accepted Answer

No — all household members' income counts, not just those on the loan. This catches many buyers off guard.

Question 4

Can I use FHA or USDA for a fixer-upper?

Accepted Answer

FHA has a rehab option called the 203k. USDA has limited repair programs. FHA is the stronger pick for distressed properties.

Question 5

Which loan closes faster in Sonoma County?

Accepted Answer

FHA generally closes faster. USDA requires an extra USDA approval step that can add one to three weeks to the timeline.

Question 6

Is there a minimum credit score for USDA?

Accepted Answer

Most lenders want 640 or higher for USDA. FHA will go lower, sometimes to 580 or even 500 with the right down payment.

FHA vs USDA Loans in Sonoma, CA