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San Leandro buyers choosing between FHA and USDA loans face a core trade-off. FHA accepts 3.5% down with mortgage insurance; USDA requires zero down but only for rural-eligible properties.
The Alameda County median household income is $126,240. Both loan types serve different buyer profiles in this market.
FHA at 5.75% interest works for buyers with limited savings. The program accepts 3.5% down and starts at 580 FICO.
Mortgage insurance (MIP) is the trade-off. Above 90% LTV, MIP stays for the life of the loan.
USDA loans offer zero down for buyers in USDA-eligible rural areas. No mortgage insurance applies; instead you pay an annual fee of 0.35% of the loan balance.
Income limits apply and vary by household size. The Alameda County median of $126,240 sits near the threshold for larger families.
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 San Leandro.
San Leandro buyers choosing between FHA and USDA loans face a core trade-off. FHA accepts 3.5% down with mortgage insurance; USDA requires zero down but only for rural-eligible properties.
The Alameda County median household income is $126,240. Both loan types serve different buyer profiles in this market.
FHA at 5.75% interest works for buyers with limited savings. The program accepts 3.5% down and starts at 580 FICO.
FHA works anywhere in San Leandro; USDA only in USDA-eligible rural zones. If your property doesn't qualify as rural, FHA is your only choice.
FHA charges upfront and ongoing mortgage insurance. USDA charges an annual fee instead. The total cost structure differs significantly over 30 years.
Choose FHA if you're buying anywhere in San Leandro and have 3.5% to 5% saved. You'll qualify with 580+ FICO and accept mortgage insurance as the cost of entry.
Choose USDA if your property sits in a USDA-eligible rural area and your household income fits the cap. Zero down and no mortgage insurance make this the winner when you qualify.
Yes — FHA lets you put 3.5% down and carry mortgage insurance. USDA requires zero down with an annual fee instead.
At 5.75% interest, 740 FICO, 96.5% LTV, the P&I payment is $4,377 per month. Priced June 12, 2026.
Only if your specific property is in a USDA-eligible rural area. San Leandro's urban zones typically don't qualify. Check USDA's property map for your address.
FHA is priced at 5.75% as of June 2026. USDA rates aren't included here. Compare both lenders' current quotes directly.
FHA starts at 580 FICO. USDA typically requires 620+ and stronger compensating factors. If your credit is under 600, FHA is more accessible.
in San Leandro, CA