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East Palo Alto sits in San Mateo County, where median household income of $156,000 supports homes across the $200K–$600K range. At 6.125%, a $200,000 USDA loan runs $1,215 monthly for principal and interest alone.
Burlingame's 220 Park office tower just hit 100% occupancy with tenants like Confluent and Upstart. That kind of employment growth in the county keeps buyer demand steady and home values resilient for USDA-eligible properties.
6.125%
Interest Rate
$1,215
Monthly P&I
$0
Down Payment
740
Min. FICO
$179,400
Income Cap
USDA Loans in East Palo Alto
USDA loans require a 740+ FICO score and zero down payment. Income limits cap at 115% of San Mateo County's median household income—roughly $179,400 for a family of four. You must occupy the property as your primary residence.
At $200,000, a USDA loan pencils for buyers earning $60K–$180K annually. The county's $156,000 median income sits comfortably within USDA limits. Property must be in a USDA-eligible rural area; East Palo Alto qualifies for most neighborhoods.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in East Palo Alto.
East Palo Alto sits in San Mateo County, where median household income of $156,000 supports homes across the $200K–$600K range. At 6.125%, a $200,000 USDA loan runs $1,215 monthly for principal and interest alone.
Burlingame's 220 Park office tower just hit 100% occupancy with tenants like Confluent and Upstart. That kind of employment growth in the county keeps buyer demand steady and home values resilient for USDA-eligible properties.
USDA loans require a 740+ FICO score and zero down payment. Income limits cap at 115% of San Mateo County's median household income—roughly $179,400 for a family of four. You must occupy the property as your primary residence.
USDA loans move through both retail banks and mortgage brokers in California. Brokers typically close faster—30 to 45 days—because they shop multiple lenders. Retail banks often take 45 to 60 days and may have tighter overlays on rural property eligibility.
USDA guidelines changed in 2026 to tighten income verification and property-eligibility checks. Most lenders now require recent tax returns, W-2s, and a USDA property-eligibility letter before rate lock.
USDA makes sense in East Palo Alto only if the property sits in an eligible rural zone. Most of East Palo Alto qualifies, but some neighborhoods near downtown San Mateo don't. Check eligibility before falling in love with a home.
At $200,000 with zero down, USDA beats FHA because there's no mortgage insurance ever. The 6.125% rate and $1,215 payment are real wins for first-time buyers in the county's income range.
FHA loans also go zero-down in East Palo Alto but carry mortgage insurance for life if down payment is under 10%. USDA has no insurance at all. Over 30 years, that's tens of thousands in savings on a $200K loan.
Conventional 5% down ($10K) avoids PMI at 95% LTV after three years of on-time payments. But you need $10K upfront and typically a 760+ FICO. USDA requires neither—just income verification and a rural-eligible property.
Reposado fine-dining Mexican restaurant opened in downtown San Mateo in February 2026. That signals neighborhood investment and foot traffic—the kind of amenity that keeps property values steady for long-term USDA buyers in the county.
San Mateo City Council is weighing a regional transit tax to fund Caltrain and BART expansion. If approved, it improves commute options from East Palo Alto into Silicon Valley job centers.
No. USDA loans require zero down payment. You finance the full purchase price. The only upfront cost is the 1% USDA guarantee fee, rolled into the loan amount.
Principal and interest run $1,215 per month at 6.125% on a 30-year USDA loan. Add property taxes, insurance, and HOA if applicable. This scenario assumes 740 FICO, primary residence, 30-day lock.
Most lenders require 740+ FICO for USDA approval. Some brokers go as low as 680 with compensating factors like higher income or larger reserves. Call to discuss your specific credit profile.
Yes. Income must not exceed 115% of San Mateo County's median household income—about $179,400 for a family of four. Higher-income households don't qualify, even with strong credit.
Most East Palo Alto neighborhoods qualify, but not all. USDA requires a rural-eligibility letter from the USDA. Your lender pulls this before rate lock. Downtown areas near San Mateo may not qualify.