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Berkeley's housing market is anchored by the university and tech workers crossing the Bay Bridge. A $937,500 purchase with 20% down runs $4,437 monthly at 5.875%, locking in no PMI and full agency backing.
The Golden Gate Fields racetrack is becoming a public shoreline park — a rare waterfront addition that signals long-term infrastructure investment. Buyers here are betting on both neighborhood stability and regional growth.
5.875%
Interest Rate
$4,437
Monthly P&I
620
Min FICO
$750,000
Loan Amount
20% ($187,500)
Down Payment
30 days
Lock Period
Conventional Loans in Berkeley
Conventional loans in Berkeley require a 620 FICO minimum, but 740+ is standard for rates like these. You'll need 3-20% down; at 20% (80% LTV), PMI vanishes entirely. Below 20%, PMI stays until you hit 78% LTV automatically or request cancellation at 80%.
Alameda County's median household income of $126,240 supports a $750,000 loan comfortably. Debt-to-income limits run 43-50% depending on reserves and credit profile. Most lenders want 2-6 months of liquid reserves for a conventional close.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Berkeley.
Berkeley's housing market is anchored by the university and tech workers crossing the Bay Bridge. A $937,500 purchase with 20% down runs $4,437 monthly at 5.875%, locking in no PMI and full agency backing.
The Golden Gate Fields racetrack is becoming a public shoreline park — a rare waterfront addition that signals long-term infrastructure investment. Buyers here are betting on both neighborhood stability and regional growth.
Conventional loans in Berkeley require a 620 FICO minimum, but 740+ is standard for rates like these. You'll need 3-20% down; at 20% (80% LTV), PMI vanishes entirely. Below 20%, PMI stays until you hit 78% LTV automatically or request cancellation at 80%.
California's conventional market splits between retail banks, mortgage brokers, and direct lenders. Brokers like SRK CAPITAL source from multiple wholesale lenders, which typically means faster pricing updates and tighter spreads than single-bank retail.
Fannie Mae and Freddie Mac set the rules — no lender overlays beyond agency requirements. Closing timelines run 30-45 days for conventional. Appraisals and employment verification are standard; cash reserves matter more than in FHA lending.
Conventional pencils in Berkeley above $750,000 because PMI at 10% down costs more than the rate premium on FHA. At 80% LTV ($750K loan on $937,500), you skip PMI entirely — that's the sweet spot for this market.
Below $500,000, FHA's lower rate might win. Above $1.2M, jumbo overlays tighten credit and reserve rules. Right here at 20% down, conventional is the cleanest path.
FHA would run a lower rate but tack on mortgage insurance for life unless you refinance. That insurance never cancels on FHA — it's a permanent cost. Conventional at 20% down has zero insurance, period.
VA loans offer zero down with no PMI, but only for eligible veterans. If you qualify, VA is unbeatable. For civilian buyers in Berkeley, conventional at 20% down beats FHA's lifetime insurance trade-off.
Cafe Bolita just opened on Berkeley's restaurant row with heirloom masa dishes — a sign the neighborhood is attracting serious dining investment. That kind of retail momentum supports long-term property values and walkability.
Berkeley Restaurant Week runs through April 12, drawing foot traffic and signaling a healthy commercial corridor. Buyers here are buying into a neighborhood with active cultural life, not just proximity to the university.
Yes — 20% down (80% LTV) is the only way to skip PMI on conventional. Below 20%, PMI is required until you hit 78% LTV automatically or request cancellation at 80%. At 20%, there's no insurance cost and no rate penalty.
At 5.875% on a $750,000 loan, principal and interest run $4,437 monthly. That's based on the rate as of April 13, 2026, with 0.195 points ($1,462 upfront). Property taxes, insurance, and HOA would add to that total.
Yes — conventional allows 3% down, but PMI kicks in. At 10% down ($93,750), you'd carry PMI until refinancing or hitting 78% LTV. The monthly cost depends on your loan amount and credit score. Call for a comparison quote.
620 FICO is the agency minimum, but lenders typically want 740+ for the best rates. Below 740, you'll see rate bumps or stricter reserve requirements. Berkeley's market is competitive — stronger credit wins better terms.
Conventional closings run 30-45 days. Appraisal and employment verification are standard. If your file is clean and employment is stable, you'll land on the faster end. Jumbo loans take longer; FHA can be faster with lower documentation.