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in Tulare, CA
Both FHA and USDA loans make homeownership accessible in Tulare, but they serve different borrower profiles. FHA loans work anywhere in the city with just 3.5% down, while USDA loans offer zero down payment for eligible rural properties.
The right choice depends on where you're buying in Tulare County and your income level. USDA eligibility is address-specific and caps your household income, while FHA has no location or income restrictions.
FHA loans allow credit scores as low as 580 for 3.5% down payment deals. You pay an upfront mortgage insurance premium of 1.75% plus annual premiums for the life of most loans.
There's no income limit with FHA, making it ideal for higher earners who lack savings. Properties must meet FHA appraisal standards, but nearly every home in Tulare qualifies by location.
USDA loans require zero down payment and offer lower mortgage insurance costs than FHA. You pay a 1% upfront guarantee fee and 0.35% annual fee, which is cheaper long-term than FHA premiums.
Not all Tulare addresses qualify as rural enough for USDA approval. Your household income can't exceed 115% of the county median, and the property must be your primary residence in an eligible zone.
The biggest split is down payment versus location limits. FHA gives you flexibility to buy anywhere in Tulare with 3.5% saved, while USDA eliminates the down payment but restricts where you can purchase.
Mortgage insurance costs favor USDA over time. FHA charges 0.55% to 0.80% annually based on loan size, while USDA caps at 0.35%. Income matters only for USDA—FHA doesn't check how much you earn.
Choose USDA if you're buying in an eligible Tulare County area and your income falls within limits. The zero down payment and lower insurance costs beat FHA for qualified buyers who plan to stay long-term.
Go with FHA if the property you want sits outside USDA zones or your income exceeds county limits. You'll pay more in mortgage insurance, but you gain complete location freedom across Tulare.
No. USDA designates specific rural zones in Tulare County based on population density. Check the USDA eligibility map with your target address before applying.
USDA typically costs less monthly due to zero down payment and lower mortgage insurance rates. FHA premiums run 0.55%-0.80% annually versus USDA's 0.35%.
Yes. FHA accepts 580 credit scores for 3.5% down deals. USDA lenders typically want 620 minimum, though some approve lower scores with compensating factors.
USDA caps household income at 115% of county median. Limits vary by household size and change annually—verify current thresholds with your loan officer.
Yes, if your home sits in a USDA-eligible zone and you meet income limits. Many borrowers refinance to drop FHA mortgage insurance costs.