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in Hillsborough, CA
Hillsborough sits in one of California's hottest real estate markets, where the median household income in San Mateo County reaches $156,000 annually.
The 2026 conforming limit for San Mateo County is $1,249,125, which covers most homes in Hillsborough. Both loan types can reach that ceiling, but they differ sharply in how much cash you need upfront and what happens after closing.
Conventional loans are the standard choice for most Hillsborough buyers without military service. You'll typically put down 3% to 20% of the purchase price.
Conventional underwriting is straightforward and widely available. Lenders compete aggressively on rates and terms. The trade-off is that you need a solid credit score (usually 620 or higher) and documented income to qualify.
VA loans are exclusively for eligible veterans, active-duty service members, and surviving spouses. The defining feature is zero down payment — you can finance the full purchase price with no cash at closing.
VA underwriting is often more flexible on credit and income documentation than conventional. The VA guarantees a portion of the loan, which reduces lender risk. For eligible buyers in Hillsborough, VA loans eliminate the down-payment barrier entirely.
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 Hillsborough.
Hillsborough sits in one of California's hottest real estate markets, where the median household income in San Mateo County reaches $156,000 annually.
The 2026 conforming limit for San Mateo County is $1,249,125, which covers most homes in Hillsborough. Both loan types can reach that ceiling, but they differ sharply in how much cash you need upfront and what happens after closing.
Conventional loans are the standard choice for most Hillsborough buyers without military service. You'll typically put down 3% to 20% of the purchase price.
The biggest gap is down payment. Conventional buyers need at least 3% cash at closing; VA buyers need zero. For a typical Hillsborough purchase, that's a meaningful chunk of savings freed up with VA.
VA loans win on upfront cash requirements. Conventional wins on flexibility — you can use it regardless of military status, and PMI eventually disappears. Both reach the $1,249,125 county limit.
Choose conventional if you're not military-eligible or prefer to put down 10% to 20%. You'll avoid the funding fee and build equity faster. Conventional suits buyers with solid savings and a 680+ credit score.
Choose VA if you're eligible and have limited savings for a down payment. Zero down means you can buy sooner without draining your cash reserves.
Yes — as long as you have a valid Certificate of Eligibility from the VA. You can use your VA benefit in any state, including California. Hillsborough homes up to $1,249,125 qualify. Contact the VA or your lender to verify your eligibility.
Yes, if you put down less than 20%. PMI protects the lender if you default. The cost varies by credit score and loan amount but typically ranges from 0.5% to 1.5% annually.
The funding fee is typically 2.3% of the loan amount for first-time VA users. It rolls into your loan balance, so you don't pay it upfront. Subsequent VA loans carry a lower fee (0.3%). Disabled veterans may qualify for a waiver.
Conventional loans often close in 30 to 40 days. VA loans can take 40 to 50 days because the VA appraisal process is more thorough. Both depend on your documentation and the title company's workload. A responsive borrower can speed either one up.
Yes — the San Mateo County median household income is $156,000. Both conventional and VA lenders typically approve loans up to 43% of gross income.