Question 1

Are any Milpitas properties USDA-eligible?

Accepted Answer

No. Milpitas falls within a densely populated urban county. USDA's property eligibility map excludes it entirely.

Question 2

What credit score do I need for FHA in Milpitas?

Accepted Answer

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

Question 3

Does FHA have income limits?

Accepted Answer

No. FHA has no income ceiling. USDA does — and Bay Area incomes often exceed those caps anyway.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA's annual fee is typically lower than FHA's MIP. But USDA isn't available here, so it's a moot point for Milpitas buyers.

Question 5

Can I use USDA if I buy outside Milpitas?

Accepted Answer

Yes, if the property is in a USDA-eligible area. Parts of rural California qualify. We can check eligibility for any address.

Question 6

Is FHA or conventional better for Milpitas buyers?

Accepted Answer

FHA wins when credit is below 680 or savings are tight. Conventional can cost less long-term if you have stronger credit. Rates vary by borrower profile and market conditions.

FHA vs USDA Loans in Milpitas: Which One Works Here?