Question 1

Can I use USDA loans anywhere in Burlingame?

Accepted Answer

No, USDA loans only work in designated rural and suburban areas. Many parts of Burlingame may fall outside eligible zones, so check USDA maps before home shopping.

Question 2

Which program has easier credit requirements?

Accepted Answer

FHA accepts credit scores as low as 580, while USDA typically requires 640 or higher. Both offer more flexibility than conventional loans.

Question 3

Do both programs have income limits?

Accepted Answer

Only USDA has income limits based on household size and county medians. FHA has no income ceiling, making it available to all qualified borrowers regardless of earnings.

Question 4

Can I avoid mortgage insurance with either option?

Accepted Answer

No, both FHA and USDA require insurance premiums. However, USDA typically charges lower ongoing fees than FHA programs.

Question 5

Which option costs less over the full loan term?

Accepted Answer

USDA often costs less due to zero down payment and lower insurance fees. However, property eligibility and income limits may make FHA your only government-backed choice.

FHA vs USDA Loans in Burlingame: Which Government-Backed Option Fits Your Budget?