Question 1

Can I use a USDA loan to buy a home in San Bruno?

Accepted Answer

Most San Bruno properties do not qualify for USDA loans due to the city's population density and urban classification. USDA restricts purchases to designated rural areas, which exclude developed cities in San Mateo County.

Question 2

Which loan has a lower down payment requirement?

Accepted Answer

USDA offers 0% down, while FHA requires 3.5% down with a 580+ credit score. However, USDA's strict location and income limits make it unavailable for most San Bruno buyers.

Question 3

Does FHA or USDA have lower mortgage insurance costs?

Accepted Answer

USDA charges 1% upfront plus 0.35% annually. FHA charges 1.75% upfront plus 0.55%-1.05% annually. USDA's annual fee is lower, but FHA's broader eligibility usually makes it the only option in San Bruno.

Question 4

Do both loans have income limits?

Accepted Answer

USDA caps household income at 115% of the area median. FHA has no income limits. You can earn any amount and still qualify for FHA financing.

Question 5

Which loan is easier to qualify for with lower credit?

Accepted Answer

FHA accepts credit scores as low as 580 for 3.5% down or 500 for 10% down. USDA typically requires 640+ credit. FHA offers more flexibility for buyers rebuilding credit.

FHA vs USDA Loans in San Bruno: Which Government Program Fits Your Budget?