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in Woodside, CA
Woodside buyers choosing between conventional and FHA loans face a real tradeoff: lower rates with conventional, or lower down payments with FHA. Both programs cap at $1,249,125 in 2026.
The median household income in San Mateo County is $156,000, which shapes what each program can deliver. San Mateo's downtown is shifting with projects like Bespoke, a mixed-use development replacing the former Talbot's location.
Conventional at 6.25% works best when you have substantial savings. At 80% LTV the payment is $4,618 with no PMI.
Underwriting wants documented income and two years of work history. Plan on reserves beyond the down payment.
FHA at 5.875% lets you buy with as little as 3.5% down. The monthly payment is $4,437 at 96.5% LTV.
Credit requirements are softer: 580 FICO qualifies with 3.5% down. Upfront MIP is 1.75% of the loan amount.
Local decision guide
Use this comparison to weigh Conventional Loans and FHA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Woodside.
Woodside buyers choosing between conventional and FHA loans face a real tradeoff: lower rates with conventional, or lower down payments with FHA. Both programs cap at $1,249,125 in 2026.
The median household income in San Mateo County is $156,000, which shapes what each program can deliver. San Mateo's downtown is shifting with projects like Bespoke, a mixed-use development replacing the former Talbot's location.
Conventional at 6.25% works best when you have substantial savings. At 80% LTV the payment is $4,618 with no PMI.
Conventional demands 20% down to skip PMI entirely; FHA opens the door at 3.5%. That gap is the down-payment difference. Conventional's rate is 0.375% higher.
FHA's lower rate and payment appeal to buyers with limited savings. The tradeoff is MIP for the entire loan term when down payment stays below 10%.
Pick conventional if you have substantial savings for a down payment. You'll skip mortgage insurance entirely and lock in a predictable payment. This path suits buyers with solid income documentation and two years of work history.
Choose FHA if your down payment is modest. The lower rate and payment offset MIP costs for buyers without substantial savings. FHA also works for self-employed buyers and those with recent credit issues.
Conventional at 6.25% costs $4,618 per month on a $750,000 loan. FHA at 5.875% costs $4,437 per month. FHA saves $181 monthly, but carries lifetime MIP above 90% LTV.
No. Conventional requires 80% LTV (20% down) to skip PMI entirely. Below 80% LTV, PMI applies. PMI cancels automatically at 78% LTV under federal law.
Yes, but only if you put 10% or more down. With 10%+ down, MIP cancels after 11 years. Below 10% down, MIP runs for the life of the loan.
FHA is typically easier for self-employed borrowers. FHA accepts two years of tax returns and bank statements. Conventional lenders often require more documentation and stricter guidelines.
Conventional typically requires 620 FICO minimum, but 740+ gets the best rates. FHA accepts 580 FICO with 3.5% down. Both programs offer better pricing above 740.