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in Exeter, CA
Exeter sits in USDA-eligible territory, which means you can choose between two government-backed programs. FHA requires 3.5% down, while USDA offers zero down—but USDA comes with strict income caps and property location rules.
Both programs work well for first-time buyers in Tulare County. The right choice depends on your income, savings, and whether your target property qualifies for USDA financing.
FHA loans require just 3.5% down if your credit score hits 580. You'll pay mortgage insurance for the loan's life on most purchases, which adds about 0.85% annually to your payment.
These loans work anywhere in Exeter—no property restrictions beyond standard FHA appraisal requirements. Credit scores as low as 500 can qualify with 10% down, though most lenders prefer 580 or higher.
USDA loans require zero down payment and offer lower mortgage insurance than FHA. The upfront guarantee fee is 1%, and the annual fee runs 0.35%—less than half of FHA's ongoing cost.
Income limits for Tulare County restrict household income to 115% of the area median. Properties must sit in USDA-designated rural areas, which covers most of Exeter but not every neighborhood.
Down payment separates these programs first. USDA's zero down beats FHA's 3.5% requirement, saving you thousands upfront on any Exeter home.
USDA's mortgage insurance costs 0.35% annually versus FHA's 0.85%—that's $145 monthly on a $350,000 loan. But USDA adds income restrictions and property eligibility requirements that FHA doesn't impose.
Choose USDA if you're under the income limit and buying in an eligible area. You'll save money both upfront and monthly, though underwriting takes 4-6 weeks versus FHA's 3-4 weeks.
Pick FHA if your income exceeds USDA caps, your credit sits below 640, or you're buying in a non-eligible zone. FHA also moves faster to closing and doesn't care where you buy in Exeter.
Most of Exeter qualifies, but not every property. Check the USDA eligibility map with the specific address before making an offer.
Income limits vary by household size and change annually. For current limits, check with a broker who can verify your eligibility quickly.
Yes. FHA doesn't require first-time buyer status, unlike the common misconception about government programs.
FHA typically closes in 3-4 weeks. USDA takes 4-6 weeks due to additional eligibility verification steps.
USDA insurance drops off when your balance hits 80% LTV. FHA insurance stays for the loan's life on most purchases.