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Millbrae sits in one of the Bay Area's priciest corridors. Most properties here push past conforming loan limits, making conventional financing tricky without jumbo underwriting.
With mortgage rates hovering near 6% as of February 2026, conventional loans offer lower rates than FHA or VA options for borrowers with strong credit. Rate cuts later this year could improve pricing even more.
You need 620 minimum credit for conventional approval. Most competitive rates require 740 or higher. Down payments start at 3% for first-time buyers, 5% for repeat buyers.
Debt-to-income ratios max out at 50% with strong credit and reserves. Lenders want two months of mortgage payments in the bank after closing.
Conventional loans run through Fannie Mae and Freddie Mac guidelines. We shop 200+ lenders who all follow the same baseline rules but price differently based on loan size and credit profile.
Millbrae's high property values mean many deals cross into jumbo territory. Lenders tighten considerably above $832,750—expect stricter income verification and higher rates.
Most Millbrae buyers with 20% down and 760 credit get better pricing on conventional than any government program. Below 10% down, you pay PMI until you hit 20% equity—usually $200-400 monthly on a $1.2M home.
I see buyers overpay by shopping retail banks directly. A broker like us accesses wholesale pricing and waives lender fees, saving $2,000-5,000 at closing on typical Millbrae transactions.
FHA loans cap at $644,000 in San Mateo County. That excludes most Millbrae inventory. VA loans work if you qualify, but conventional beats VA rates right now for borrowers above 720 credit.
Jumbo loans apply once you exceed conforming limits. Jumbo guidelines are stricter—higher credit scores, more reserves, tougher appraisals. We compare both options when your loan amount lands near the threshold.
Millbrae condos near BART stations appraise well but face condo approval hurdles. Lenders require the HOA to meet Fannie/Freddie guidelines—owner-occupancy ratios, reserve funds, no litigation.
Proximity to SFO creates appraisal challenges on some streets. Properties under flight paths or near El Camino can appraise low compared to asking price. Build in appraisal contingencies.
Minimum is 620, but you need 740+ for competitive rates. Below 700, expect pricing adjustments that add 0.50-1.00% to your rate.
First-time buyers can put down 3%. Repeat buyers need 5% minimum. You pay PMI until you reach 20% equity.
Many exceed the $832,750 conforming limit and require jumbo financing. We compare both options when your loan amount is close to that threshold.
PMI costs 0.20-1.00% of your loan amount annually, paid monthly. On a $1.2M loan with 10% down, expect $200-400 per month until you hit 20% equity.
Yes, but the condo project must meet Fannie Mae or Freddie Mac approval standards. We verify that before you make an offer.
The Fed projects rate cuts later this year but not immediately. Rates are near 6% as of February 2026—four-year lows may hold for now.
Conventional Loans in Millbrae