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Woodside sits in one of California's wealthiest counties, but most of this city doesn't qualify for USDA financing. The program targets rural and suburban areas, and Woodside's estate-zoned properties exceed USDA income limits.
Parts of unincorporated San Mateo County near Woodside may qualify, but true USDA-eligible zones lie further inland. Buyers looking at Woodside specifically should explore FHA or conventional loans instead.
USDA Loans in Woodside
USDA loans require zero down payment but cap household income at 115% of area median. For San Mateo County as of February 2026, that ceiling is far below what most Woodside buyers earn.
You need a 640 credit score minimum and the property must be your primary residence. The home must sit in a USDA-eligible zone, which rules out most incorporated cities in this county.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Woodside.
Woodside sits in one of California's wealthiest counties, but most of this city doesn't qualify for USDA financing. The program targets rural and suburban areas, and Woodside's estate-zoned properties exceed USDA income limits.
Parts of unincorporated San Mateo County near Woodside may qualify, but true USDA-eligible zones lie further inland. Buyers looking at Woodside specifically should explore FHA or conventional loans instead.
USDA loans require zero down payment but cap household income at 115% of area median. For San Mateo County as of February 2026, that ceiling is far below what most Woodside buyers earn.
Few lenders actively push USDA loans in San Mateo County because eligible inventory is scarce. The brokers who do this work focus on rural pockets in the southern and eastern parts of the county.
We keep relationships with three wholesale lenders who close USDA deals quickly. Most big banks avoid the program because underwriting takes longer and profit margins are thin.
I've closed exactly two USDA loans in San Mateo County in five years, both near Half Moon Bay. Woodside buyers almost always exceed income limits or want properties outside eligible zones.
If you're set on zero down payment, VA loans work better here if you qualify. Otherwise, a 3% down conventional loan through our Community Mortgage partners makes more sense than hunting for USDA-eligible property.
VA loans also offer zero down payment without income caps, and they work anywhere in Woodside if you're a veteran. FHA loans require just 3.5% down with a 580 credit score, far easier to qualify for here.
Conventional loans with 3% down programs have higher income limits and no property restrictions. You pay PMI, but you close faster and have more homes to choose from.
Woodside's median home price history and estate lot sizes make USDA eligibility nearly impossible. The USDA defines rural as areas with populations under 35,000, but the real barrier here is property values and income levels.
San Mateo County's southern unincorporated areas near Pescadero and La Honda have better USDA prospects. Woodside-area buyers looking for zero down payment should pursue VA eligibility or consider expanding their search radius.
Most Woodside properties don't qualify because they sit outside USDA-eligible zones and exceed income limits. You'll have better luck with conventional or FHA financing.
You need a 640 minimum credit score. Higher scores get better rates, but the income cap is the bigger obstacle in San Mateo County.
The USDA guarantees the loan so lenders don't require a down payment. You still pay closing costs and a 1% upfront guarantee fee rolled into the loan.
Yes, your household income can't exceed 115% of the county median. That ceiling is far below typical Woodside buyer earnings.
VA loans for veterans offer zero down without income caps. Non-veterans should look at 3% down conventional or FHA loans with 3.5% down.