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Gilroy sits at the southern edge of Santa Clara County. That location matters — parts of Gilroy fall within USDA-eligible zones.
Most Bay Area cities are locked out of USDA entirely. Gilroy is one of the few exceptions worth knowing about.
0%
Down Payment
640
Min Credit Score
1.00%
Upfront Guarantee Fee
0.35% of loan
Annual Fee
45-60 days
Est. Close Time
USDA Loans in Gilroy
USDA loans require no down payment. You need a 640 credit score to hit automated approval — below that gets manual.
Income limits apply. Your household income must fall under the USDA cap for Santa Clara County, which runs high due to area wages.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Gilroy.
Gilroy sits at the southern edge of Santa Clara County. That location matters — parts of Gilroy fall within USDA-eligible zones.
Most Bay Area cities are locked out of USDA entirely. Gilroy is one of the few exceptions worth knowing about.
USDA loans require no down payment. You need a 640 credit score to hit automated approval — below that gets manual.
Most retail banks don't actively push USDA loans. They're less profitable to originate than conventional products.
Wholesale lenders are where USDA volume actually lives. A broker with 200+ lender relationships finds competitive USDA pricing fast.
The biggest USDA mistake I see: buyers assume they qualify on location alone. Both the property AND borrower must meet eligibility.
USDA has two fees — an upfront guarantee fee and an annual fee. They're lower than FHA mortgage insurance. That matters on a tight budget.
FHA requires 3.5% down. USDA requires zero. On a $700,000 Gilroy home, that's $24,500 you keep in your pocket.
VA loans also have no down payment — but only veterans qualify. USDA opens zero-down to non-military buyers in eligible areas.
Gilroy's outer areas near Uvas Road and rural corridors are more likely to pass the USDA eligibility map check. Central Gilroy is less certain.
Santa Clara County's high median income creates tight USDA income ceilings. Dual-income households often get disqualified — run the numbers first.
Parts of Gilroy qualify. You need to check each specific property address on the USDA eligibility map before assuming.
Limits vary by household size. Santa Clara County limits run higher than most counties — confirm current figures with your broker.
Downtown areas often fall outside USDA zones. More rural addresses on Gilroy's edges have a better shot at eligibility.
USDA charges a 1% upfront fee and 0.35% annual fee. FHA charges 1.75% upfront and up to 0.85% annually — USDA is cheaper.
Add extra time for USDA's conditional commitment review. Budget 45-60 days rather than the typical 30 for conventional loans.
Yes. USDA offers a streamline refinance for existing USDA borrowers. The property must still meet eligibility at time of refi.