Question 1

Does Sonora qualify for USDA loans?

Accepted Answer

Parts of Sonora and Tuolumne County are USDA-eligible. Check the official USDA eligibility map or ask your broker to run the address.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down. Most USDA lenders want 640 or higher, though some go lower with strong compensating factors.

Question 3

Can I use USDA if my income is too high?

Accepted Answer

No. USDA sets household income limits by county. If you're over the cap, FHA is the better path forward.

Question 4

Which loan has lower monthly payments?

Accepted Answer

USDA typically runs lower — zero down means a smaller loan, and its mortgage insurance fee is cheaper than FHA's. Rates vary by borrower profile and market conditions.

Question 5

Can I buy a fixer-upper with either loan?

Accepted Answer

FHA has a 203k rehab option for fixer-uppers. USDA has limited renovation options and generally requires the home to be move-in ready.

Question 6

Do both loans allow seller concessions?

Accepted Answer

Yes. FHA allows up to 6% in seller-paid closing costs. USDA also allows seller concessions, which can further reduce your cash to close.

FHA vs USDA Loans in Sonora, CA