Loading
in San Leandro, CA
San Leandro sits in Alameda County, where new Filipino and Nicaraguan restaurants are opening alongside burger spots and coffee roasters.
Both programs let you borrow up to $1,249,125 in 2026. The real difference isn't the ceiling—it's the down payment, the monthly cost, and who qualifies. One program moves faster with less cash upfront. The other keeps your payment lower if you have savings.
Conventional loans are the standard choice for buyers with solid credit and a down payment ready. You'll need a 620 FICO minimum, though most lenders want 640 or higher. Put 5% down and you'll carry PMI until you hit 80% equity—then it stops.
The real advantage: PMI is temporary. Once your loan balance falls to 80% of the home's value, the insurance disappears. For a $1,249,125 purchase, that's a meaningful chunk of equity to build. Your rate typically sits lower than FHA at the same credit score.
FHA loans open the door for buyers with less cash saved or lower credit scores. You can put as little as 3.5% down and still qualify with a 580 FICO. The trade-off is mortgage insurance—and it stays on the loan for the full term, even after you build equity.
FHA shines when you're short on savings. That 3.5% down requirement means you keep more cash in the bank for closing costs and repairs.
Down payment is the first split. FHA lets you start with 3.5% saved; conventional wants at least 5%. On a typical San Leandro purchase, that gap means $10,000 to $15,000 difference in cash at closing. FHA wins if your savings are tight.
Mortgage insurance is the second. FHA charges it forever—no matter how much equity you build. Conventional PMI stops once you own 20% of the home. Over 15 or 30 years, that's a real savings if you stay in the house.
Pick FHA if you're saving aggressively but not quite at 5% yet, or if your credit sits between 580 and 640. You're not trying to stay in San Leandro forever—maybe five to seven years. The lower down payment gets you in now.
Pick conventional if you have 5% or more saved and your credit is 640+. You plan to stay in the house long enough for PMI to vanish. Alameda County's median income of $126,240 supports a conventional loan comfortably.
No. FHA mortgage insurance stays for the life of the loan, even after you build 20% equity. Conventional PMI drops at 80% LTV. If avoiding lifetime insurance matters, conventional is the better path.
FHA starts at 580 FICO with 3.5% down. Conventional wants 620 minimum, though most lenders prefer 640+. Alameda County's median income supports either program at those thresholds.
Both FHA and conventional cap at $1,249,125 in 2026. That's the county limit. If you're buying above that, you'll need a jumbo loan, which carries stricter rules and higher rates.
Conventional typically offers lower rates, but FHA's 3.5% down means a smaller loan amount. The payments are close. Run both scenarios with your lender to compare the exact monthly cost.
No. Both FHA and conventional let you buy without selling first if you have the income and savings. Lenders will count your current mortgage payment in your debt-to-income ratio.