Question 1

Can I use USDA in Daly City proper?

Accepted Answer

Most of Daly City is ineligible because it's too urban. Check the USDA property eligibility map — some outlying areas may qualify.

Question 2

Which loan has lower mortgage insurance?

Accepted Answer

USDA costs less annually at 0.35% versus FHA's 0.55%-0.85%. USDA insurance can also drop off eventually, FHA's typically doesn't.

Question 3

Does FHA have income limits like USDA?

Accepted Answer

No. FHA has no income cap, so high earners can use it. USDA restricts income to 115% of area median.

Question 4

Which loan approves faster?

Accepted Answer

FHA closes quicker because USDA adds a rural development review step. Expect 30-45 days for FHA, 45-60 for USDA.

Question 5

Can I buy a condo with either loan?

Accepted Answer

FHA approves condos if the building is FHA-approved. USDA allows condos in eligible rural areas but Daly City condos rarely qualify geographically.

FHA vs USDA Loans in Daly City: Which Government-Backed Loan Fits Your Budget?