Question 1

Can I use USDA loans anywhere in Corning?

Accepted Answer

Most of Corning qualifies, but check the USDA eligibility map. Some higher-density areas near town center may not qualify for the rural housing program.

Question 2

Which loan has lower monthly payments?

Accepted Answer

USDA typically runs $40-60 less monthly due to lower mortgage insurance. Zero down payment also means you're not financing a down payment amount.

Question 3

Do both loans allow seller concessions?

Accepted Answer

Yes. FHA allows up to 6% seller contribution. USDA also permits seller-paid closing costs within reasonable limits.

Question 4

What are Tehama County USDA income limits?

Accepted Answer

Limits vary by household size and are set at 115% of area median income. A loan officer can confirm your eligibility based on current caps.

Question 5

Can I refinance out of mortgage insurance later?

Accepted Answer

USDA insurance drops off after enough equity builds. FHA insurance stays for the loan life on most purchases, requiring a refinance to remove it.

Question 6

Which program approves lower credit scores?

Accepted Answer

FHA officially accepts 580 scores. USDA typically requires 640 minimum through most lenders, though exceptions exist with manual underwriting.

FHA vs USDA Loans in Corning: Which Low-Down-Payment Option Fits Your Budget?