Question 1

Is San Jose eligible for USDA loans?

Accepted Answer

Most of San Jose is not USDA-eligible. Some outer edges of Santa Clara County may qualify. Check the USDA property eligibility map first.

Question 2

Which loan has lower mortgage insurance?

Accepted Answer

USDA's annual guarantee fee is typically lower than FHA's monthly MIP. Run both scenarios with your broker to compare total cost.

Question 3

Can I use FHA or USDA on a condo?

Accepted Answer

FHA has an approved condo list — many San Jose condos qualify. USDA rarely applies to condos and has stricter property rules.

Question 4

What credit score do I need for each loan?

Accepted Answer

FHA allows 580 for 3.5% down. Most USDA lenders want 640 or higher. USDA underwriting tends to be stricter on credit.

Question 5

Do USDA loans have a loan limit?

Accepted Answer

USDA doesn't publish hard loan limits, but your income and debt ratios cap what you can borrow. High Santa Clara County prices can be a hurdle.

Question 6

Which loan closes faster in San Jose?

Accepted Answer

FHA typically closes faster. USDA requires an extra approval step through the USDA office, which can add time to escrow.

FHA vs USDA Loans in San Jose: Which One Fits?