Question 1

What's the conforming loan limit for Gilroy in 2026?

Accepted Answer

The 2026 conforming limit in Santa Clara County is $1,249,125. FHA and VA loans carry the same ceiling. Loans above that amount are jumbo and typically require 20% down.

Question 2

How much do I need to put down to buy in Gilroy?

Accepted Answer

Conventional loans require 3% to 5% down for most buyers. FHA allows 3.5% down with a 580+ credit score. VA and USDA buyers may qualify for zero down if eligible.

Question 3

Do I need 20% down to avoid PMI?

Accepted Answer

Yes — 20% down (80% loan-to-value) skips PMI on a conventional loan. Below that, PMI applies until you reach 78% LTV or request cancellation at 80%.

Question 4

What credit score do I need to qualify?

Accepted Answer

Conventional loans typically require 620+. FHA accepts 580+ for the 3.5% down program. VA and USDA have their own minimums, usually 580 or higher.

Question 5

Is Santa Clara County an FHA high-cost area?

Accepted Answer

Yes. Santa Clara County is designated as an FHA high-cost area for 2026. This affects your maximum loan amount and MIP rates, but FHA remains a solid option.

Question 6

Is Santa Clara County a VA high-cost area?

Accepted Answer

Yes. VA loans in Santa Clara County are subject to high-cost-area rules. Zero-down VA financing still works well here despite the designation.

Question 7

How does the new medical school affect Gilroy's market?

Accepted Answer

Santa Clara University's new medical school brings physician training and professional jobs to the South Bay. This signals long-term housing demand and may support property values.

Question 8

What's the typical closing timeline in Gilroy?

Accepted Answer

Most conventional loans close in 30 to 45 days. FHA and VA can take 45 to 60 days due to appraisal requirements. Your lender will confirm the exact timeline.

Question 9

Can I get a jumbo loan in Gilroy?

Accepted Answer

Yes. Jumbo loans above $1,249,125 are available in Santa Clara County. Expect to put 20% down and have strong credit (typically 700+).

Question 10

What does USDA financing require in this area?

Accepted Answer

USDA loans offer zero down in eligible rural areas near Gilroy. Income limits are set per household size and capped at the area-specific threshold for Santa Clara County.

Question 11

How long does it take to refinance in Gilroy?

Accepted Answer

A conventional refinance typically closes in 20 to 30 days. VA Streamline refinances can close faster — sometimes 15 to 21 days — with reduced documentation.

Question 12

What's the difference between FHA and VA in Santa Clara County?

Accepted Answer

Both cap at $1,249,125 here. FHA requires 3.5% down minimum; VA allows zero down for eligible veterans. FHA charges MIP for the loan's life; VA charges a one-time funding fee.

Question 13

Do I need to sell my current home before buying in Gilroy?

Accepted Answer

You can carry two mortgages temporarily if you have equity or strong income. Lenders want to see your ability to cover both payments.

Question 14

What property types qualify for loans in Gilroy?

Accepted Answer

Single-family homes, condos, and townhouses all qualify. Condos must be in FHA-approved projects. Investment properties have stricter requirements and higher rates.

Gilroy mortgage questions answered