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in Visalia, CA
Visalia buyers often compare FHA and USDA loans because both offer affordable paths to homeownership. The big difference: USDA requires zero down but limits who qualifies by income and property location.
FHA works almost anywhere in Tulare County with just 3.5% down. USDA only covers eligible rural and suburban zones, which includes parts of Visalia and surrounding areas.
FHA loans let you buy with 3.5% down and credit scores as low as 580. You pay upfront and monthly mortgage insurance, which adds to your payment but makes approval easier.
These loans work on any property type in Visalia—condos, single-family homes, or townhouses. No income caps, so higher earners can use FHA if they want the low down payment.
USDA loans require zero down payment if the property sits in an eligible rural area. Many Visalia neighborhoods qualify, but you need to check the USDA map for each specific address.
Income limits vary by household size—most families must earn below 115% of county median income. Credit requirements start around 640 for smooth approvals, though some lenders go lower.
USDA beats FHA on upfront costs—zero down versus 3.5% saves you $10,500 on a $300,000 home. But USDA restricts your property search to eligible areas and caps your income.
FHA charges higher mortgage insurance long-term. USDA's 0.35% annual fee costs less than FHA's 0.55%-0.80%, which means lower monthly payments if you qualify.
Choose USDA if your target property qualifies and your income falls below county limits. The zero down payment and lower insurance make it unbeatable for cost savings.
Go FHA if you're shopping citywide, earn over USDA limits, or want faster approvals. FHA works on properties USDA won't touch and doesn't care about your income level.
No. Some central Visalia neighborhoods are too urban to qualify. Check the USDA eligibility map with your specific address before making offers.
USDA typically costs less monthly due to lower mortgage insurance. On a $300,000 loan, expect $87 less per month compared to FHA insurance.
Yes. FHA has no income limits, making it the default choice for higher earners who want low down payments in Visalia.
FHA closes quicker in most cases. USDA adds extra income verification and property eligibility steps that extend timelines by 1-2 weeks.
Yes. FHA allows up to 6% seller concessions, USDA allows 6% as well. Both let sellers cover most closing costs.