Question 1

Can I use an FHA loan to buy in Hillsborough?

Accepted Answer

Yes, but most Hillsborough properties exceed FHA loan limits for San Mateo County. You'll have better success finding FHA-eligible homes in neighboring communities with lower price points.

Question 2

What credit score do I need for an FHA loan in San Mateo County?

Accepted Answer

FHA requires a minimum 580 credit score for 3.5% down, or 500-579 for 10% down. Most lenders add overlays requiring 600-620 scores for approval. Rates vary by borrower profile and market conditions.

Question 3

How much is FHA mortgage insurance in Hillsborough?

Accepted Answer

FHA charges 1.75% upfront (typically financed) plus annual premiums of 0.55-0.85% depending on loan amount and down payment. This insurance protects lenders and remains for the loan's life with less than 10% down.

Question 4

What's the FHA loan limit for San Mateo County?

Accepted Answer

San Mateo County has higher FHA limits than standard counties due to its premium real estate market. Contact a lender for current year limits, as they adjust annually based on housing prices.

Question 5

Should I choose FHA or conventional financing?

Accepted Answer

FHA works best with limited down payment funds or credit scores below 680. Conventional loans cost less long-term if you have 5-20% down and strong credit. A broker can compare both options for your situation.

FHA Loans in Hillsborough: Navigating High-End Markets with Flexible Financing