Question 1

Can I use USDA in East Palo Alto?

Accepted Answer

Most of East Palo Alto doesn't qualify as a USDA-eligible area. Check the USDA map — only specific suburban zones meet their rural designation.

Question 2

Which loan has lower mortgage insurance?

Accepted Answer

USDA charges lower monthly mortgage insurance than FHA. But FHA's upfront premium is similar, and you'll pay monthly premiums on both for the loan term.

Question 3

Do both programs accept 580 credit scores?

Accepted Answer

Yes. FHA approves 580+ scores for 3.5% down. USDA accepts 580+ but may require compensating factors like higher reserves.

Question 4

Can sellers help with closing costs on both loans?

Accepted Answer

FHA allows sellers to contribute up to 6% toward closing costs. USDA permits seller concessions but caps them at the actual closing cost amount.

Question 5

What are the income limits for USDA in San Mateo County?

Accepted Answer

As of February 2026, household income can't exceed roughly $128,000 for a family of four. Limits adjust based on household size and county median income.

FHA vs USDA Loans in East Palo Alto: Which Fits Your Budget?