Question 1

Is Los Gatos eligible for USDA loans?

Accepted Answer

Most of Los Gatos does not fall in USDA-eligible rural zones. Properties on the outer edges may qualify — check the USDA eligibility map before assuming.

Question 2

What credit score do I need for FHA in Los Gatos?

Accepted Answer

580 gets you 3.5% down. Scores between 500 and 579 require 10% down. Below 500, FHA won't work.

Question 3

Does USDA have income limits in Santa Clara County?

Accepted Answer

Yes. Santa Clara County limits are strict. Many Los Gatos buyers earn too much to qualify for USDA financing.

Question 4

Which loan has lower monthly costs?

Accepted Answer

USDA typically wins on monthly cost. No PMI and zero down beats FHA's mortgage insurance that runs for the loan's life.

Question 5

Can I use FHA or USDA to buy a condo in Los Gatos?

Accepted Answer

FHA works on approved condos. USDA rarely applies to condos since most condo projects sit outside rural eligibility zones.

Question 6

Do both loans require mortgage insurance?

Accepted Answer

Both do, but differently. FHA charges upfront and monthly premiums. USDA charges a smaller annual guarantee fee with no monthly PMI.

FHA vs USDA Loans in Los Gatos, CA