Question 1

Can I use a USDA loan in Belmont?

Accepted Answer

No. Belmont sits in San Mateo County, which doesn't have USDA-eligible zones. The program only covers rural and some suburban areas, not urban Bay Area cities.

Question 2

Which loan has lower mortgage insurance?

Accepted Answer

USDA charges 0.35% annually versus FHA's 0.45-1.05%. But since USDA doesn't work in Belmont, this comparison only matters if you're considering other California locations.

Question 3

What's the minimum down payment for FHA in Belmont?

Accepted Answer

3.5% with a 580 credit score. On an $850,000 home, that's $29,750. You'll also need funds for closing costs unless the seller contributes.

Question 4

Do both loans have property condition requirements?

Accepted Answer

Yes. FHA and USDA both require homes to meet safety and livability standards. Expect appraisers to flag peeling paint, roof damage, or faulty electrical systems.

Question 5

Can I remove mortgage insurance from an FHA loan?

Accepted Answer

Only if you put down 10% or more at purchase. Otherwise, mortgage insurance stays for the full 30-year term on FHA loans originated after 2013.

FHA vs USDA Loans in Belmont: Which Government Program Fits Your Budget?