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in Woodland, CA
Woodland sits in a USDA-eligible zone, which means buyers here can choose between two strong government loan options. FHA requires 3.5% down but works anywhere in the city. USDA offers zero down but only for properties in designated rural areas.
Both programs accept lower credit scores than conventional loans. The right choice depends on where you're buying in Woodland and how much cash you have for closing. Most buyers here qualify for one or the other, rarely both.
FHA loans work anywhere in Woodland with just 3.5% down if your credit score hits 580. Below that, you need 10% down. The loan limit here is $832,750 as of February 2026, which covers most single-family homes in Yolo County.
You'll pay mortgage insurance for the loan's life unless you refinance later. Upfront MI costs 1.75% of the loan amount, then annual premiums range from 0.45% to 1.05% depending on your down payment and loan term. Sellers can contribute up to 6% toward your closing costs.
USDA loans require zero down payment but only work in designated rural areas around Woodland. Most properties outside the main city center qualify. Your household income can't exceed 115% of the area median, which runs around $115,000 for a family of four in Yolo County.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee, both lower than FHA's insurance costs. Processing takes longer than FHA because USDA must verify eligibility for each property. Expect 45-60 days to close versus 30-45 for FHA.
Local decision guide
Use this comparison to weigh FHA Loans and USDA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Woodland.
Woodland sits in a USDA-eligible zone, which means buyers here can choose between two strong government loan options. FHA requires 3.5% down but works anywhere in the city. USDA offers zero down but only for properties in designated rural areas.
Both programs accept lower credit scores than conventional loans. The right choice depends on where you're buying in Woodland and how much cash you have for closing. Most buyers here qualify for one or the other, rarely both.
FHA loans work anywhere in Woodland with just 3.5% down if your credit score hits 580. Below that, you need 10% down. The loan limit here is $832,750 as of February 2026, which covers most single-family homes in Yolo County.
Down payment is the biggest split. FHA needs 3.5% minimum while USDA requires nothing upfront. On a $400,000 home, that's $14,000 in cash versus zero. But USDA restricts where you can buy and caps your income, while FHA doesn't care about either factor.
Mortgage insurance costs differ too. FHA's annual MI ranges from 0.45% to 1.05% and never drops off. USDA charges just 0.35% annually and costs less upfront. On that same $400,000 loan, you'd pay about $1,400-$4,200 yearly with FHA versus $1,400 with USDA.
Pick USDA if you're buying outside Woodland's main city limits, earn under the income cap, and want to preserve cash. Zero down means you can buy sooner without draining savings. Just confirm the property sits in a USDA zone before making an offer—about 40% of listings here won't qualify.
Choose FHA if you need flexibility on location or earn above USDA limits. FHA works for condos and properties in town that USDA won't touch. The 3.5% down requirement is manageable for most buyers, and you'll close weeks faster since there's no rural eligibility review to navigate.
No, USDA only works in designated rural zones. Most properties outside the main city center qualify, but you need to check the USDA eligibility map before making offers.
USDA costs less overall. Annual fees run 0.35% versus FHA's 0.45%-1.05%, and USDA's upfront fee is 1% versus FHA's 1.75%.
Both accept 580 credit scores. USDA prefers 640+ for smoother processing, but manual underwriting works below that if your file is clean otherwise.
Household income caps at roughly 115% of area median. For a family of four, that's around $115,000 as of February 2026.
FHA typically closes in 30-45 days. USDA takes 45-60 days because properties need rural eligibility verification before final approval.