Question 1

Is Monte Sereno eligible for USDA loans?

Accepted Answer

Monte Sereno is an established Silicon Valley city. It is very unlikely to qualify under USDA rural eligibility maps.

Question 2

What credit score do I need for FHA in Santa Clara County?

Accepted Answer

You need at least 580 for the 3.5% down option. A score between 500 and 579 requires 10% down.

Question 3

Does USDA have income limits in Santa Clara County?

Accepted Answer

Yes. USDA sets household income caps that are strict relative to Santa Clara County salaries. Many buyers here will exceed them.

Question 4

Can I avoid mortgage insurance with USDA?

Accepted Answer

No. USDA charges an upfront guarantee fee and an annual fee. FHA charges MIP, which stays for the loan's life with under 10% down.

Question 5

Which loan has a lower down payment requirement?

Accepted Answer

USDA requires zero down. FHA requires 3.5% with a 580 credit score. But USDA eligibility is the bigger obstacle in Monte Sereno.

Question 6

Can I use FHA for a higher-priced home in Monte Sereno?

Accepted Answer

FHA loan limits apply and vary by county. Santa Clara County limits are higher than most — confirm the current cap with your broker.

FHA vs USDA Loans in Monte Sereno, CA