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in Hillsborough, CA
Hillsborough sits in San Mateo County's heart, where the median household income is $156,000 and homes command premium prices. FHA and USDA loans both aim to help buyers with modest down payments enter this market.
Burlingame's 220 Park office tower just hit 100% occupancy, signaling strong local employment. That matters because your income and job stability anchor both FHA and USDA qualification.
FHA loans let you put down 3.5% and still qualify. That means on a typical purchase, you keep more cash in the bank at closing. The tradeoff: FHA mortgage insurance (MIP) stays on your loan for the full term, no matter how much equity you build.
Hillsborough's 2026 FHA limit is $1,249,125, so you can finance up to that amount with 3.5% down. Credit floor sits around 580 FICO, though lenders often prefer 640+. FHA is predictable — the rules don't change based on your neighborhood or the property type.
USDA loans offer zero down — you finance the full purchase price plus a funding fee. That's powerful for buyers with limited savings. The catch: USDA has strict income caps and property-location rules. Not every Hillsborough home qualifies.
USDA income eligibility is set per household size and capped at the area-specific threshold for this county. The property must sit in an eligible rural area — many Hillsborough neighborhoods don't qualify.
Down payment is the headline difference. FHA requires 3.5% upfront; USDA requires nothing. On a typical Hillsborough purchase, that gap is meaningful. But USDA's income cap and property-location rules eliminate it for many buyers in this area.
Mortgage insurance works differently. FHA charges MIP for the life of the loan — a permanent cost. USDA has a funding fee instead, but no ongoing insurance if you qualify by income.
Pick FHA if you have 3.5% to 5% saved and your income exceeds USDA's cap for your household size. FHA works in every Hillsborough neighborhood and doesn't ask where you live.
Pick USDA if your household income is below the area cap, you have zero savings, and your target property sits in an eligible rural zone. Many Hillsborough homes fall outside USDA's footprint, so verify location first.
Not necessarily. USDA limits financing to rural-designated areas. Many Hillsborough neighborhoods fall outside that footprint. Check the property address against USDA's eligibility map before you apply. FHA works anywhere in the city.
FHA charges mortgage insurance (MIP) for the life of the loan — it never goes away. USDA charges a one-time funding fee at closing, then no annual insurance if you qualify by income. That's a real difference in long-term cost.
USDA caps household income at the area-specific threshold for this county, scaled by family size. The exact limit varies by household size. Contact a lender to confirm your eligibility — don't estimate it yourself.
USDA — zero down means you bring nothing to closing. FHA requires 3.5% down. On a typical purchase, that's a meaningful difference. But USDA's property-location rules may disqualify your target home.
FHA MIP stays for the life of the loan — refinancing is your only escape. USDA has no ongoing insurance if you qualify by income, so there's nothing to refinance away. That's a structural advantage for USDA-eligible buyers.