Question 1

Is Davis eligible for USDA loans?

Accepted Answer

Most of Davis city limits fall outside USDA-eligible zones. Surrounding rural areas in Yolo County may qualify — check the USDA eligibility map directly.

Question 2

What credit score do I need for FHA in Davis?

Accepted Answer

Most lenders require a 580 score for 3.5% down. Some accept 500-579, but they'll require 10% down instead.

Question 3

Does USDA have income limits in Yolo County?

Accepted Answer

Yes. Household income must fall under USDA limits for Yolo County. Limits vary by household size — confirm current figures with your broker.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA's annual fee is typically lower than FHA's monthly premium. The gap matters over a 30-year loan — run the numbers on both.

Question 5

Can I use USDA or FHA on a condo in Davis?

Accepted Answer

FHA works on approved condo projects. USDA rarely applies to urban condos, and Davis condos almost certainly fall outside eligible zones.

Question 6

Which loan closes faster — FHA or USDA?

Accepted Answer

FHA typically closes faster. USDA loans require an extra approval step through the USDA Rural Development office, which adds time.

FHA vs USDA Loans in Davis, CA: Which One Fits?