FHA Loan Limits and USDA Eligibility in Merced County, California
2026 FHA one-unit limit in Merced County is $541,287. Two-unit is $693,050, three-unit is $837,700, and four-unit is $1,041,125. USDA 502 Guaranteed 1–4 person moderate income is $124,900. ZIP centers in the table below are marked likely eligible or likely not eligible for USDA. Official eligibility is still the property address.
2026 FHA Loan Limits Map for California
FHA Eligibility Requirements
You need to meet all six. Loan limits in Merced County are set by county. DTI is a lender call. An FHA lender confirms the official answer.
3.5% down payment
Minimum is 3.5% (580+ score) or 10% (500–579). FHA allows the full amount to come from a gift: family, employer, labor union, or an approved program. A signed gift letter is required.
Credit score 580+ for 3.5% down
580+ qualifies for 3.5% down. 500–579 generally requires 10% down. Lenders often set their own floor above the FHA minimum.
Debt-to-income within FHA guidelines
Guidelines target a housing ratio around 31% and total DTI around 43%. Automated underwriting can approve stronger files above those thresholds. Manual underwriting uses tighter caps.
Check DTI on the affordability calculatorPrimary residence only
The home must be your main residence, not a second home or investment property. You must move in within the timeline FHA and your contract require.
1–4 unit home that meets FHA standards
One-to-four unit homes, FHA approved condos, and some manufactured homes that meet FHA rules. For 2–4 units you must live in one unit. The home must pass an FHA appraisal.
Loan amount at or below the county limit
2026 one-unit limits start at $541,287 in most counties and go up to $1,249,125 in high-cost areas. 2–4 unit limits are higher. Enter a ZIP to see every FHA county on that ZIP.
See 2026 FHA loan limitsUSDA Property Eligibility and Income Limits Map for California
USDA Eligibility Requirements
You need to meet all six. Property location and income in Merced County vary by area. A USDA approved lender confirms the official answer.
Property in a USDA eligible area
The home must be in a USDA designated rural or suburban area. Over 97% of U.S. land qualifies, including many suburbs near major cities. Use the eligibility map to check any address.
Check your area on the mapHousehold income at or below the area limit
USDA caps household income at 115% of the area median, with a national floor of $122,800 for 1–4 person households. Every adult in the home counts, not just borrowers. Deductions for dependents and childcare can help.
Check income limits for your ZIPPrimary residence only
The home must be your full-time primary residence. Investment properties and second homes are not eligible. You must intend to occupy the home within 60 days of closing.
Single-family property (1 unit)
USDA Guaranteed loans cover single-unit homes only. Duplexes and multi-unit properties do not qualify, even with owner occupancy. Condos and manufactured homes are eligible under specific conditions. For house-hacking a 2–4 unit property, FHA and VA are the right tools. USDA is not.
U.S. citizenship or qualified alien status
You must be a U.S. citizen, U.S. non-citizen national, or qualified alien. Permanent residents with a green card generally qualify. Your lender will verify documentation.
Credit score 640+ typical
USDA does not set a hard credit floor, but most lenders require 640+ for streamlined approval. Some lenders go lower with compensating factors. Your full credit profile (payment history, DTI, reserves) matters as much as the score.
Merced County FHA Limits, USDA Income, and ZIP Eligibility
FHA one-unit caps are county. USDA 1–4 person guaranteed income can split a county; when a ZIP lists more than one cap, both are listed. USDA property is a first look from each ZIP’s geographic center versus USDA ineligible-area boundaries — the official test is the address. City is the USPS primary city for that ZIP; a city is not USDA eligible or ineligible as a whole.
Cities in Merced County: Atwater, Ballico, Cressey, Delhi, Dos Palos, El Nido, Gustine, Hilmar, Le Grand, Livingston, Los Banos, Merced, Planada, Snelling, South Dos Palos, Stevinson, Turlock, Winton
| ZIP | City | USDA property | FHA one-unit loan limit | USDA 1–4 person moderate income |
|---|---|---|---|---|
| 93620 | Dos Palos | Likely eligible | $541,287 | $124,900 |
| 93635 | Los Banos | Likely eligible | $541,287 | $124,900 |
| 93665 | South Dos Palos | Likely eligible | $541,287 | $124,900 |
| 95301 | Atwater | Likely eligible | $541,287 | $124,900 |
| 95303 | Ballico | Likely eligible | $541,287 | $124,900 |
| 95312 | Cressey | Likely eligible | $541,287 | $124,900 |
| 95315 | Delhi | Likely eligible | $541,287 | $124,900 |
| 95317 | El Nido | Likely eligible | $541,287 | $124,900 |
| 95322 | Gustine | Likely eligible | $541,287 | $124,900 |
| 95324 | Hilmar | Likely eligible | $541,287 | $124,900 |
| 95333 | Le Grand | Likely eligible | $541,287 | $124,900 |
| 95334 | Livingston | Likely eligible | $541,287 | $124,900 |
| 95340 | Merced | Likely eligible | $541,287 | $124,900 |
| 95341 | Merced | Likely eligible | $541,287 | $124,900 |
| 95348 | Merced | Likely eligible | $541,287 | $124,900 |
| 95365 | Planada | Likely eligible | $541,287 | $124,900 |
| 95369 | Snelling | Likely eligible | $541,287 | $124,900 |
| 95374 | Stevinson | Likely eligible | $541,287 | $124,900 |
| 95380 | Turlock | Likely eligible | $541,287 | $124,900 |
| 95388 | Winton | Likely eligible | $541,287 | $124,900 |
Connect with a Lender in Merced County
Connect with a lender to confirm FHA loan limits, USDA income limits, and a specific California address. Only a lender can confirm your official eligibility.
Loan Options in Merced County
A licensed lender can confirm USDA property eligibility, household income, and the FHA county cap for a specific Merced County address. Then they can match you if you qualify.
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