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Union City sits in the heart of Alameda County. It is classified as an urban area by USDA eligibility maps.
That classification is the first problem. Most of Union City falls outside USDA-eligible zones — and that matters before you do anything else.
0%
Down Payment
640 (typical)
Min Credit Score
41% back-end
DTI Limit
Fixed 30-year
Rate Type
USDA Loans in Union City
USDA loans require zero down payment. You also need household income at or below the local limit for Alameda County.
Credit score minimums typically sit around 640 for automated underwriting. Debt-to-income ratios must stay under 41% on the back end.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Union City.
Union City sits in the heart of Alameda County. It is classified as an urban area by USDA eligibility maps.
That classification is the first problem. Most of Union City falls outside USDA-eligible zones — and that matters before you do anything else.
USDA loans require zero down payment. You also need household income at or below the local limit for Alameda County.
Most retail banks won't touch USDA loans in the Bay Area. They don't see enough volume to keep staff trained on the program.
Wholesale lenders we work with do handle USDA regularly. The catch is finding properties that actually qualify in this county.
I see buyers get excited about zero down — then crushed when the property fails eligibility. Check the USDA map first, every time.
If your target address doesn't qualify, FHA at 3.5% down is often the next best move for low-down buyers in Alameda County.
USDA beats FHA on one thing: no down payment at all. FHA requires 3.5% down and charges mortgage insurance differently.
But FHA works almost everywhere in Union City. USDA is geographically restricted. That practical difference usually decides it.
Alameda County's density works against USDA eligibility. USDA targets lower-population areas — Union City doesn't fit that profile well.
As of April 2026, buyers in Union City are better served exploring FHA or Community Mortgage programs tailored for this market.
Most of Union City falls outside USDA rural eligibility zones. Check your specific address on the USDA eligibility map before proceeding.
USDA sets household income limits by county and family size. Alameda County limits are stricter than many California counties due to higher area median income.
Most lenders require 640 or higher for automated approval. Scores below that may require manual underwriting with additional documentation.
USDA charges an upfront guarantee fee plus an annual fee. FHA's monthly mortgage insurance is often higher, but FHA has far wider property eligibility.
FHA loans are the most practical alternative here. VA loans are also worth exploring if you have military service history.
USDA loans can apply to condos, but the property must still pass eligibility zone requirements. Condos in urban Union City almost certainly won't qualify.