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FHA Loans in Gilroy
What's the monthly payment on a $750,000 FHA loan at today's rate?
At 5.875% interest, principal and interest run $4,437 per month. Add property taxes, insurance, and mortgage insurance for your total housing payment.
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Gilroy sits in Santa Clara County, where the median household income of $159,674 supports homes well above $750,000. Schools like the newly opened Laurelwood Elementary in nearby Sunnyvale show ongoing investment in the region's education infrastructure.
At 5.875% interest, a $750,000 FHA loan carries a $4,437 monthly payment (principal and interest). With just 3.5% down, FHA opens the door for buyers who'd struggle to save 20% for conventional financing.
5.875%
Interest Rate
$4,437
Monthly P&I
580
Minimum FICO
3.5% minimum
Down Payment
$1,249,125
2026 FHA Limit
02
FHA requires a 580 FICO minimum, though 740+ gets better pricing. The $750,000 loan amount sits well below the 2026 FHA limit of $1,249,125 for this high-cost area.
Down payment starts at 3.5% of the purchase price. Upfront mortgage insurance (1.75% of the loan) rolls into your balance, so you're not writing a separate check at closing.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Gilroy.
Gilroy sits in Santa Clara County, where the median household income of $159,674 supports homes well above $750,000. Schools like the newly opened Laurelwood Elementary in nearby Sunnyvale show ongoing investment in the region's education infrastructure.
At 5.875% interest, a $750,000 FHA loan carries a $4,437 monthly payment (principal and interest). With just 3.5% down, FHA opens the door for buyers who'd struggle to save 20% for conventional financing.
FHA requires a 580 FICO minimum, though 740+ gets better pricing. The $750,000 loan amount sits well below the 2026 FHA limit of $1,249,125 for this high-cost area.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
03
FHA loans in California move through both retail banks and mortgage brokers. Broker-based lenders often close faster and offer more flexibility on credit and employment history than large banks do.
Underwriting timelines run 17 to 21 days for FHA. Appraisals are stricter than conventional (the property must meet FHA safety standards), so factor in an extra week for inspection and repairs if needed.
04
FHA makes sense in Gilroy when you have solid income but limited savings. At $159,674 county median income, a $750,000 purchase is achievable with 3.5% down and a 740 FICO.
Conventional would demand 5% to 10% down and stricter credit. Above $1,249,125, you'd need jumbo financing with tighter rules.
05
Conventional loans typically run 0.25% to 0.5% higher in rate than FHA but skip mortgage insurance at 20% down. For a $750,000 purchase, that's a meaningful down-payment gap.
FHA wins when you have less cash saved. Conventional wins if you can put 20% down and want to avoid lifetime mortgage insurance above 90% LTV.
06
Laurelwood Elementary's new Sunnyvale campus signals Santa Clara Unified's commitment to school infrastructure. Families buying in Gilroy benefit from that investment in the broader county school system.
Alum Rock Union School District's workforce housing initiative shows the county is addressing teacher retention through affordable programs. That kind of stability supports long-term home values for buyers in the region.
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Santa Clara County's FHA lending remains steady as buyers balance affordability with rising home prices. The $1,249,125 limit here accommodates most purchases in Gilroy and surrounding areas.
Broker-based FHA closings in the region average 35 to 40 days. Retail banks often take longer due to stricter overlays and slower underwriting queues.
FAQ
At 5.875% interest, principal and interest run $4,437 per month. Add property taxes, insurance, and mortgage insurance for your total housing payment.
No. FHA requires just 3.5% down minimum with a 580 FICO. That's roughly $27,000 on a $750,000 purchase—far less than conventional's typical 5% to 10%.
Yes, if you put 10% or more down. MIP cancels after 11 years. Below 10% down, MIP runs for the life of the loan.
Expect 17 to 21 days for underwriting and appraisal. Broker lenders often move faster than retail banks. FHA appraisals are stricter, so budget extra time for repairs.
The minimum is 580 FICO, but 740+ gets better pricing and terms. At 740 FICO, you qualify for the rate shown here without overlays.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
SRK CAPITAL in Santa Clara County
Our team of licensed mortgage brokers works Santa Clara County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
What working with us looks like
Licensed mortgage brokers
You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including Santa Clara County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
Side-by-side comparisons to help you choose the right mortgage program.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.