Question 1

Can I use USDA loans anywhere in San Mateo County?

Accepted Answer

No. USDA works in unincorporated areas like Pescadero but not cities like Foster City. Check USDA's eligibility map before searching properties.

Question 2

Which loan has lower monthly insurance costs?

Accepted Answer

USDA charges 0.35% annually versus FHA's 0.85%. But USDA's location restrictions make this irrelevant for Foster City buyers.

Question 3

Do both loans accept the same credit scores?

Accepted Answer

FHA goes as low as 580, while USDA typically needs 640 minimum. FHA is more flexible with credit challenges.

Question 4

Can I remove mortgage insurance on either loan?

Accepted Answer

USDA lets you drop insurance after reaching 80% equity and 11 years. FHA requires insurance for the loan's life on most mortgages.

Question 5

What if I want zero down in Foster City?

Accepted Answer

USDA won't work here. Check VA eligibility if you've served, or consider down payment assistance programs paired with FHA financing.

FHA vs USDA Loans in Foster City: Which Government Loan Wins?