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in Dinuba, CA
Dinuba sits in USDA-eligible territory, which means buyers here can choose between two strong government-backed loan options. FHA requires 3.5% down while USDA offers zero down — but income limits and location rules change who qualifies.
Most Dinuba buyers start with FHA because it works anywhere in the city and has fewer restrictions. USDA becomes the better play if you qualify income-wise and want to skip the down payment entirely.
FHA loans work for any property type in Dinuba — single-family homes, condos, even multi-units if you live in one. You need 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579.
The tradeoff is mortgage insurance that lasts the loan's life unless you refinance out later. Upfront MI costs 1.75% of the loan amount, then you pay 0.55%-0.85% annually depending on your down payment and loan term.
No income limits exist with FHA, which matters in Dinuba where household earnings vary widely. Lenders mainly care that your debt-to-income ratio stays under 43%, sometimes stretching to 50% with strong compensating factors.
USDA loans eliminate the down payment requirement entirely if the property sits in an eligible rural zone. Most of Dinuba qualifies, but you need to verify the specific address through USDA's map tool before making offers.
Income limits cap eligibility at $103,500 for most households in Tulare County. USDA counts everyone living in the home, not just borrowers, when calculating total household income.
The guarantee fee runs 1% upfront plus 0.35% annually — significantly cheaper than FHA mortgage insurance. Rates often come in 0.125%-0.25% lower than FHA because USDA loans carry less default risk.
The down payment gap is obvious — USDA requires nothing while FHA needs 3.5%. But USDA's income limits disqualify many Dinuba families who earn over $103,500 combined, while FHA has no income ceiling at all.
Property location matters more with USDA since only eligible rural zones qualify. FHA works on any approved property in Dinuba regardless of location, giving you more listing options when shopping.
Mortgage insurance costs less with USDA over the loan's life. FHA charges 0.55%-0.85% annually while USDA stays at 0.35%, saving roughly $100-$200 monthly on a $350,000 loan.
Choose USDA if your household income falls under $103,500 and the property you want sits in an eligible area. The zero down payment and lower insurance costs create meaningful monthly savings compared to FHA.
Go with FHA if you earn over the USDA limit, need more property options, or want faster closing timelines. FHA also handles credit issues more flexibly — we see approvals at 580 while USDA typically wants 640 minimum.
Many Dinuba buyers pre-qualify for both, then let the specific property dictate which program to use. Run the numbers with actual addresses before writing offers since location determines USDA eligibility.
Most of Dinuba qualifies as USDA-eligible rural area. You must verify each specific property address through USDA's eligibility map before making offers.
USDA typically costs $100-$200 less monthly due to lower mortgage insurance and no down payment requirement. Rates vary by borrower profile and market conditions.
Yes. FHA allows up to 6% seller concessions while USDA permits 6% as well, helping cover closing costs if you're short on cash.
USDA counts all household members' income, not just borrowers. If you're borderline, time your application before income increases or consider FHA instead.
Yes, if you still meet income limits and the property remains USDA-eligible. Many buyers do this to eliminate FHA mortgage insurance once they build equity.