Question 1

Is Los Altos Hills eligible for USDA loans?

Accepted Answer

Most of Los Altos Hills likely falls outside USDA rural eligibility zones. Verify your specific address on the USDA property eligibility map before assuming you qualify.

Question 2

What credit score do I need for FHA in California?

Accepted Answer

580 gets you 3.5% down. Below 580, you need 10% down. Most lenders want to see 620 or higher in practice.

Question 3

Do USDA loans have income limits in Santa Clara County?

Accepted Answer

Yes. USDA sets household income limits by county. Santa Clara County limits can be restrictive given local income levels.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA's annual fee is typically lower than FHA's monthly MIP. But USDA eligibility restrictions mean most Los Altos Hills buyers never get that option.

Question 5

Can I use FHA for a higher-priced home here?

Accepted Answer

FHA loan limits apply. Santa Clara County has high-cost limits, but Los Altos Hills home prices can exceed even those caps.

Question 6

Which loan is easier to qualify for?

Accepted Answer

FHA is more flexible on credit and has no location restrictions. For Los Altos Hills, FHA is the more accessible of the two programs.

FHA vs USDA Loans in Los Altos Hills