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Daly City sits outside USDA eligibility zones. The entire city falls within the San Francisco metro area, which USDA defines as urban. Properties here don't qualify for the USDA guaranteed loan program.
Borrowers eyeing Daly City need alternative zero-down financing. Mortgage rates near 6% as of February 2026 make low down payment programs more valuable. FHA and VA loans serve similar buyers in this market.
USDA Loans in Daly City
USDA loans require properties in designated rural areas and household income below local limits. Borrowers need 640+ credit scores. The zero down payment structure helps buyers who lack savings but have stable income.
San Mateo County has USDA-eligible zones in unincorporated areas near Half Moon Bay and Pescadero. Income limits run around 115% of area median for most household sizes. These rules don't help Daly City buyers.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Daly City.
Daly City sits outside USDA eligibility zones. The entire city falls within the San Francisco metro area, which USDA defines as urban. Properties here don't qualify for the USDA guaranteed loan program.
Borrowers eyeing Daly City need alternative zero-down financing. Mortgage rates near 6% as of February 2026 make low down payment programs more valuable. FHA and VA loans serve similar buyers in this market.
USDA loans require properties in designated rural areas and household income below local limits. Borrowers need 640+ credit scores. The zero down payment structure helps buyers who lack savings but have stable income.
We work with 15+ USDA lenders across our network. Most run automated underwriting through the USDA system. Turnaround times stretch 30-45 days due to USDA approval layers beyond standard lender review.
Rate shopping matters even with zero down. Lenders price USDA guarantee fees differently. Some absorb processing costs others pass to borrowers. Our wholesale access finds the cleanest pricing structure.
Daly City buyers chasing zero down should check VA eligibility first. Veterans get better terms and no income caps. FHA needs just 3.5% down and works anywhere in the county without location restrictions.
I see borrowers waste weeks pursuing USDA in urban areas. Check the USDA eligibility map before pulling credit. Daly City hasn't qualified in decades and won't change under current metro definitions.
FHA loans dominate Daly City because they accept 580 credit scores and work citywide. The 3.5% down payment requirement adds roughly $30K on a typical purchase. Veterans using VA skip down payments entirely without income limits.
Conventional loans need 3% down but require stronger credit and income ratios. Borrowers with 700+ scores often save money long-term with conventional despite higher upfront cash needs. USDA would beat all these if properties qualified.
Daly City borders San Francisco with prices reflecting proximity to tech jobs. Condos and townhomes outnumber single-family inventory. FHA condo approval lists determine which buildings qualify for financing.
San Mateo County property taxes run 1.2% baseline plus local assessments. HOA fees in multi-family buildings add $300-600 monthly. These costs affect debt ratios more than down payment source when qualifying.
No. Daly City is entirely urban and ineligible for USDA loans. The San Francisco metro designation blocks all properties from qualifying.
Parts of unincorporated San Mateo County near Half Moon Bay qualify. These areas sit 15-20 miles from Daly City along the coast.
Yes, but only in eligible rural zones. Limits run around 115% of area median income for most household sizes.
VA loans for eligible veterans offer the strongest terms. Non-veterans should consider FHA with 3.5% down or community assistance programs.
USDA approvals typically need 30-45 days. The guarantee process adds time beyond standard lender underwriting for properties that qualify.