Question 1

What is the conforming loan limit in Santa Clara County for 2026?

Accepted Answer

The 2026 conforming limit is $1,249,125. Loans above this amount are jumbo and carry different rates and terms. Most Los Altos Hills purchases stay within this ceiling.

Question 2

Do I need 20% down to buy in Los Altos Hills?

Accepted Answer

Yes — 20% down avoids PMI entirely. Conventional loans allow 5% to 10% down with PMI until you reach 20% equity. FHA permits 3.5% down with a 580+ credit score.

Question 3

Is Santa Clara County an FHA high-cost area?

Accepted Answer

Yes. Santa Clara County is an FHA high-cost area. FHA loan limits match the conforming limit of $1,249,125 for 2026, opening FHA financing to higher-priced homes.

Question 4

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require 620+ FICO for conventional loans. Scores of 640+ improve your rate and terms. FHA allows 580+ FICO with 3.5% down.

Question 5

How much income do I need to qualify in Los Altos Hills?

Accepted Answer

Santa Clara County's median household income is $159,674. Lenders typically allow debt-to-income ratios of 43% to 50%. A household earning $160,000 could support roughly $6,800 to $8,000 monthly.

Question 6

Is Santa Clara County a VA high-cost area?

Accepted Answer

Yes. Santa Clara County qualifies as a VA high-cost area. VA loan limits match the conforming ceiling of $1,249,125 for 2026.

Question 7

What is the difference between FHA and conventional loans?

Accepted Answer

FHA requires 3.5% down and allows lower credit scores. Mortgage insurance runs for the loan's life if down payment is under 10%. Conventional requires 5% to 10% down and PMI cancels at 78% LTV.

Question 8

How does the new medical school affect Los Altos Hills?

Accepted Answer

Santa Clara University's medical school brings physician training and professional jobs to the region. This signals long-term economic strength and may support steady home values.

Question 9

Can I get a VA loan with zero down?

Accepted Answer

Yes. VA-eligible borrowers can finance up to $1,249,125 with zero down in Santa Clara County for 2026. The funding fee replaces PMI.

Question 10

What does PMI cost on a conventional loan?

Accepted Answer

PMI typically runs 0.5% to 1.5% annually on the loan balance. It depends on credit and down payment. PMI cancels automatically at 78% LTV.

Question 11

Do I need to sell my current home first?

Accepted Answer

Not necessarily. If you have equity in your current home, you may qualify for a bridge loan. Lenders will count your current home's equity toward reserves.

Question 12

What is the difference between jumbo and conforming loans?

Accepted Answer

Jumbo loans exceed $1,249,125 and typically require 20% down and 700+ FICO. Rates usually run 0.125% to 0.5% higher than conforming. Most Los Altos Hills homes stay within conforming range.

Question 13

How long does closing take in Los Altos Hills?

Accepted Answer

Conventional closings typically take 30 to 45 days from application to funding. FHA and VA loans may take 45 to 60 days due to appraisal requirements. Delays can occur if the appraisal comes in low.

Question 14

Can I use a gift for my down payment?

Accepted Answer

Yes. Most lenders allow gift funds from family members. You'll need a gift letter stating the money is a gift, not a loan.

Los Altos Hills mortgage FAQ: rates, limits, and local buying questions