Question 1

Does Gilroy qualify for USDA loans?

Accepted Answer

Parts of Gilroy fall within USDA-eligible boundaries. Check the USDA property eligibility map before assuming a specific address qualifies.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down. USDA typically requires 640, though some lenders set higher minimums.

Question 3

Which loan has lower mortgage insurance?

Accepted Answer

USDA generally runs lower annual MIP than FHA. FHA also adds a 1.75% upfront charge that USDA doesn't have.

Question 4

Can I use USDA to buy in any Gilroy neighborhood?

Accepted Answer

No. USDA eligibility is property-specific. Some Gilroy areas qualify; others don't. Verify the address on the USDA site first.

Question 5

Does Santa Clara County have income limits for USDA?

Accepted Answer

Yes. USDA income limits for Santa Clara County are set by household size. High earners in the Bay Area frequently exceed the threshold.

Question 6

Which loan closes faster, FHA or USDA?

Accepted Answer

FHA typically closes faster. USDA loans require an extra approval step through the USDA office, which can add days to weeks.

FHA vs USDA Loans in Gilroy, CA