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South San Francisco sits between San Francisco and Silicon Valley, where home prices reflect proximity to major tech employers. FHA loans make this expensive market accessible with just 3.5% down.
As of February 2026, the Fed signals more rate cuts later this year, though not immediately. Borrowers who lock FHA rates now can refinance later if cuts materialize.
FHA Loans in South San Francisco
FHA accepts credit scores as low as 580 for 3.5% down, or 500 with 10% down. Most lenders want 620+ for best pricing. Two years past bankruptcy or foreclosure typically qualifies you.
Debt-to-income ratios can reach 50% with compensating factors like cash reserves or housing payment history. Self-employed borrowers need two years of tax returns showing stable income.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in South San Francisco.
South San Francisco sits between San Francisco and Silicon Valley, where home prices reflect proximity to major tech employers. FHA loans make this expensive market accessible with just 3.5% down.
As of February 2026, the Fed signals more rate cuts later this year, though not immediately. Borrowers who lock FHA rates now can refinance later if cuts materialize.
FHA accepts credit scores as low as 580 for 3.5% down, or 500 with 10% down. Most lenders want 620+ for best pricing. Two years past bankruptcy or foreclosure typically qualifies you.
We access 200+ wholesale lenders with varying FHA overlays. Some accept 580 credit, others require 620. Some cap DTI at 45%, others go to 50% with strong compensating factors.
Direct lenders and big banks typically impose stricter overlays than wholesale channels. Shopping across our network often finds approval where retail banks decline.
South San Francisco condos need FHA approval status. Many newer buildings near Caltrain lack approval, limiting options. We verify condo eligibility before you waste time viewing properties.
FHA mortgage insurance costs more than conventional PMI above 680 credit. If your score exceeds 680 and you have 5% down, conventional loans usually save money long-term.
VA loans beat FHA for eligible veterans with zero down and no monthly mortgage insurance. USDA loans work in eligible rural areas but South San Francisco doesn't qualify for USDA.
Conventional loans require just 3% down now but demand 620+ credit and stricter income documentation. FHA accepts lower scores and higher DTI ratios than conventional programs allow.
San Mateo County FHA loan limits reach $1,249,125 for single-family homes in 2026. This covers most South San Francisco properties outside premium hillside neighborhoods like Buri Buri.
Property taxes run about 1.2% in SSF with Mello-Roos in newer developments. FHA requires reserves to cover these costs. Industrial areas near biotech campuses may have environmental reviews.
Most lenders approve 580+ credit for 3.5% down. Some require 620 for best rates. We shop lenders with lower overlays if your score sits below 620.
Only if the complex has FHA approval. Many newer buildings near Caltrain lack approval. We verify status before you tour properties to avoid wasted time.
3.5% down with 580+ credit score. On a $900,000 home, that's $31,500 down. Gift funds from family cover the entire down payment amount.
San Mateo County FHA limits reach $1,249,125 for single-family homes. This covers most SSF properties except premium hillside areas and luxury waterfront homes.
FHA wins below 680 credit or with high DTI. Above 680 credit, conventional saves money long-term with lower mortgage insurance costs. We run both scenarios.