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in Foster City, CA
Foster City sits in San Mateo County, where the median household income is $156,000. The 2026 conforming loan limit is $1,249,125. Buyers here choose between conventional loans with a down payment and VA loans with zero down.
Both offer 30-year fixed rates, but the structure differs significantly. Conventional requires 5% to 20% down and carries PMI until 80% LTV. VA requires zero down, no PMI, and a funding fee instead.
Conventional loans at 6.25% work best when you have real savings. At 80% LTV the monthly P&I is $4,618 with no PMI.
Underwriting requires 740+ FICO and documented income. Two years of work history is standard. PMI cancels at 78% LTV or can be requested at 80% LTV.
VA loans at 5.75% offer zero down for eligible veterans and active military. The monthly P&I is $4,377 on a full $750,000 loan.
A funding fee replaces PMI: 2.15% at zero down. The fee rolls into the loan balance. VA disability rating of 10% or higher exempts you from the funding fee.
Local decision guide
Use this comparison to weigh Conventional Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Foster City.
Foster City sits in San Mateo County, where the median household income is $156,000. The 2026 conforming loan limit is $1,249,125. Buyers here choose between conventional loans with a down payment and VA loans with zero down.
Both offer 30-year fixed rates, but the structure differs significantly. Conventional requires 5% to 20% down and carries PMI until 80% LTV. VA requires zero down, no PMI, and a funding fee instead.
Conventional loans at 6.25% work best when you have real savings. At 80% LTV the monthly P&I is $4,618 with no PMI.
The rate gap favors VA by 50 basis points: 5.75% versus 6.25%. On the same $750,000 loan, VA saves $241 per month in P&I. Conventional buyers put 20% down, so loan amounts differ structurally.
Down payment is the real divider. Conventional requires cash at closing; VA requires none. If you have substantial savings, conventional avoids PMI entirely. If you have zero saved and VA eligibility, VA's zero-down structure wins.
Choose conventional if you have substantial savings for a down payment. Your 20% down avoids PMI, your rate is fixed at 6.25%. Conventional suits Foster City buyers with solid savings and no military service.
Choose VA if you're an eligible veteran or active military. Your 5.75% rate is lower and zero-down preserves cash. VA is the clear winner when eligibility applies and savings are limited.
Yes. At 80% LTV (20% down), conventional loans carry no PMI. Below 80% LTV, PMI applies until you reach 78% LTV.
Conventional at 6.25% costs $4,618 monthly P&I. VA at 5.75% costs $4,377 monthly P&I. That's a $241 monthly difference in your favor with VA.
No. VA loans require a Certificate of Eligibility from the VA. You must be a veteran, active duty, National Guard, or surviving spouse.
Yes. The 2.15% funding fee on a $750,000 VA loan ($16,125) rolls into your loan balance. You finance it over 30 years.
Both programs require 740+ FICO for the rates shown. Conventional may go lower with compensating factors; VA typically floors at 620 FICO.