Question 1

Can I use a USDA loan anywhere in Redwood City?

Accepted Answer

No, most of Redwood City is ineligible for USDA loans due to urban density. Only specific outlying areas near city boundaries may qualify under USDA rural designation requirements.

Question 2

What income limits apply for USDA loans in San Mateo County?

Accepted Answer

Income limits vary by household size but typically cap at 115% of area median income. For a family of four, this generally means under $110,000 in total household income.

Question 3

How does my credit score affect USDA loan approval?

Accepted Answer

A 640 credit score allows streamlined processing. Lower scores may still qualify through manual underwriting, but expect additional documentation requirements and longer processing times.

Question 4

Do USDA loans take longer to close than other mortgages?

Accepted Answer

Yes, USDA loans typically require additional processing time due to government review requirements. Plan for 45-60 days from application to closing compared to 30-45 days for conventional loans.

Question 5

Can I refinance into a USDA loan later?

Accepted Answer

USDA offers streamlined refinance options for existing USDA borrowers. However, you cannot refinance from another loan type into a USDA loan; it must be a purchase transaction.

USDA Loans in Redwood City: Zero Down Payment Options for Eligible Buyers