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Gilroy sits at the southern edge of Santa Clara County. Home prices here are lower than San Jose but still firmly in conforming loan territory.
The 2026 conforming loan limit for Santa Clara County is $1,249,125. That ceiling covers most Gilroy purchases without jumping to jumbo territory.
$1,249,125
High-Balance Limit
620
Min Credit Score
3%
Min Down Payment
Varies by profile
30-Yr Fixed Rate
45%
Max DTI
Conforming Loans in Gilroy
Lenders want a 620 credit score minimum for conforming loans. Better rates start showing up around 740 and above.
Debt-to-income ratio needs to stay under 45% for most conforming approvals. W-2 borrowers with steady income fit this program well.
Local decision guide
Use this guide to connect conforming loans eligibility, lender expectations, and local market factors before comparing payment options in Gilroy.
Gilroy sits at the southern edge of Santa Clara County. Home prices here are lower than San Jose but still firmly in conforming loan territory.
The 2026 conforming loan limit for Santa Clara County is $1,249,125. That ceiling covers most Gilroy purchases without jumping to jumbo territory.
Lenders want a 620 credit score minimum for conforming loans. Better rates start showing up around 740 and above.
Conforming loans trade on the secondary market through Fannie Mae and Freddie Mac. That standardization means more lenders compete for your loan.
We shop conforming rates across 200+ wholesale lenders. Retail banks rarely offer the same pricing a broker can access. Rates vary by borrower profile and market conditions.
HousingWire flagged a sharp drop in mortgage applications as the 30-year fixed hit 6.57%. For conforming borrowers, that rate environment makes lender selection matter more than ever.
ARM demand is picking up as fixed rates stay elevated. A conforming ARM could make sense for Gilroy buyers planning to sell or refinance within 7 years.
FHA loans allow lower credit scores but add mortgage insurance that never drops until you refinance. Conforming loans drop PMI once you hit 20% equity.
Jumbo loans carry stricter reserve requirements and higher rates. Staying under the conforming limit in Gilroy keeps your options open and costs lower.
Gilroy's position in south Santa Clara County means buyers benefit from the county's high-balance conforming limit. You get Bay Area loan capacity at Gilroy prices.
Commuters and remote workers are both active in Gilroy. That buyer mix keeps demand steady, which matters for appraisal values on conforming transactions.
Santa Clara County qualifies for the high-balance limit of $1,249,125. Most Gilroy homes price well below that ceiling.
Yes. Conforming loans allow as little as 3% down. You'll pay PMI until you reach 20% equity, then it drops off.
Conforming is a subset of conventional. It means the loan meets Fannie Mae and Freddie Mac size and guideline limits.
620 gets you in the door. Scores above 740 typically earn the best rates. Rates vary by borrower profile and market conditions.
It depends on your timeline. If you plan to move or refinance within 7 years, an ARM's lower initial rate can save real money.
We access 200+ wholesale lenders. Banks only show you their own rates. On a conforming loan, that difference adds up fast.