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in Sonora, CA
Both FHA and USDA loans help Sonora buyers get into homes with less cash upfront than conventional loans require. The main split: FHA works anywhere in town with 3.5% down, while USDA offers zero down but only in eligible rural zones.
Most of Tuolumne County qualifies for USDA, making Sonora one of the few California areas where you can skip the down payment entirely. Your choice depends on where you want to live and how much you've saved.
FHA loans let you buy anywhere in Sonora with just 3.5% down and a 580 credit score. You'll pay mortgage insurance for the loan's life, but there's no income ceiling blocking high earners.
This loan works well for buyers with some savings who want flexibility on property location. FHA accepts higher debt ratios than conventional loans, which helps if you're carrying student loans or car payments.
USDA loans eliminate the down payment entirely but require you to buy in designated rural areas and stay under income limits. For Tuolumne County, that cap is $103,500 for households up to four people.
You'll still pay a funding fee and annual guarantee fee, though both cost less than FHA's mortgage insurance. Properties must meet USDA's rural definition, which covers most of Sonora outside the densest blocks downtown.
Down payment splits these loans cleanly: FHA needs 3.5%, USDA needs nothing. If you've got $10,000 saved on a $300,000 home, that difference matters—you'd have $2,500 left over with USDA versus zero with FHA after closing costs.
Income limits create the second major split. USDA caps you at $103,500 household income in Tuolumne County, while FHA doesn't care if you earn $50,000 or $200,000. Location matters too—FHA works everywhere, USDA blocks denser zones.
Choose USDA if you're under the income limit and the property you want sits in an eligible zone. Saving $10,000-$15,000 on a down payment beats everything else if you qualify.
Go FHA if you earn over $103,500, want to buy in restricted zones, or need the loan closed fast. USDA adds 2-3 weeks to closing timelines, which kills deals in competitive situations.
Most of Sonora qualifies, but denser downtown blocks don't. Check the USDA eligibility map before you start looking—your broker can pull this in two minutes.
USDA costs less annually—0.35% versus FHA's 0.55%. On a $300,000 loan, you'd save $600 per year with USDA.
Yes. Family members can cover your entire down payment and closing costs on both programs.
USDA uses gross income before taxes. If you're within $5,000 of the cap, talk to your broker—some income sources don't count.
Yes, if your home stays in a USDA zone and you meet income limits. You'd eliminate your down payment loan-to-value and cut insurance costs.