Loading
in Burlingame, CA
Burlingame's 220 Park office tower just hit 100% occupancy with tenants like Confluent and Upstart moving in. That's the kind of economic momentum that drives home prices here.
Both programs can finance up to the 2026 San Mateo County limit of $1,249,125. The real difference isn't the ceiling — it's the down payment, insurance costs, and who qualifies. This page breaks down which one makes sense for your situation.
Conventional loans are the standard choice for buyers with solid credit and a meaningful down payment. You'll need a 620 FICO floor, though most lenders prefer 640 or higher. The down payment starts at 3% but jumps to 5% or more for better pricing.
The big win: mortgage insurance (PMI) vanishes once you hit 80% loan-to-value. On a typical purchase here, that happens in five to seven years. After that, your payment drops.
FHA loans let you put down just 3.5% and still qualify. Your FICO floor is 580, though 620 opens better pricing. The trade-off is mortgage insurance (MIP) that never goes away — you'll pay it for the life of the loan, even at 95% LTV.
FHA shines when you have limited savings or a lower credit score. The 3.5% down keeps cash in your pocket. But run the math: that lifetime insurance cost adds up.
The down-payment gap is real. FHA's 3.5% minimum versus conventional's 5% typical means you keep an extra chunk of savings. On a $1,000,000 purchase, that's roughly $15,000 more in your account.
Insurance is the second major difference. Conventional PMI cancels when you hit 80% LTV. FHA's mortgage insurance never leaves. On a $1,000,000 FHA loan, you're paying insurance forever.
Pick FHA if you have limited savings and solid income. San Mateo County's median household income is $156,000 annually. If you're near that number and want to keep cash for closing costs and reserves, FHA's 3.5% down makes sense.
Choose conventional if you can put 5% or more down and plan to stay seven-plus years. Your credit needs to be 640 or higher for competitive rates. The PMI cancels, your payment drops, and you build equity faster.
Yes, but differently. Conventional PMI cancels at 80% LTV. FHA's mortgage insurance (MIP) never goes away. On a $1,000,000 loan, FHA insurance runs $300–$400 monthly for life.
No. Conventional requires 620 minimum. FHA goes down to 580. If your score is 600–620, FHA is your path. Conventional opens at 620 with better pricing at 640+.
FHA at 3.5% minimum. Conventional typically starts at 5%. On a $1,000,000 purchase, FHA saves you $15,000 at closing. But plan for lifetime mortgage insurance cost.
Both loans max out at the 2026 San Mateo County limit: $1,249,125. Neither program lets you go higher. Jumbo loans start above that ceiling.
Conventional, usually. PMI cancels around year 5–7. FHA's permanent insurance adds $36,000–$48,000 over 10 years. Conventional wins if you stay longer than seven years.