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Los Gatos sits at the edge of Silicon Valley's most expensive real estate. Many homes here push past conforming loan limits, but established neighborhoods still have properties that qualify.
As of February 2026, the Fed is expected to cut rates later this year. That could bring conforming loan rates down significantly if you can wait, but current rates remain competitive for qualified buyers.
The conforming limit for Santa Clara County is $1,249,125 for single-family homes. Properties above that need jumbo financing, which typically costs more.
You need a 620 credit score minimum, though most lenders prefer 680 or higher for best rates. Down payment can be as low as 3% for first-time buyers, 5% for repeat buyers.
Debt-to-income ratio caps at 43% in most cases, sometimes 50% with strong credit. Lenders verify two years of W-2 income or tax returns for self-employed borrowers.
Property must appraise and meet Fannie Mae or Freddie Mac standards. Condos require HOA approval, which can delay closing in Los Gatos complexes.
We shop conforming loans across 200+ wholesale lenders. Rate spreads between best and worst can hit 0.75% for the same borrower profile.
Some lenders price aggressively in Santa Clara County because they want the volume. Others add overlays that disqualify perfectly good loans.
Condo financing gets tricky in Los Gatos. Not every lender approves every project, even when the HOA meets Fannie Mae guidelines.
Most Los Gatos buyers who can use conforming loans should. The rate advantage over jumbo financing is real, especially on homes near the limit.
Tech workers often have RSUs or stock options. Those count as income, but documentation requirements are strict. We see deals fall apart when borrowers assume lenders will accept their equity comp easily.
Buyers stretching to the $1.2M limit need to understand PMI costs. Putting down less than 20% adds $300-500 monthly until you hit 20% equity.
Jumbo loans start where conforming loans stop. In Los Gatos, that threshold hits fast. Jumbo rates run 0.25-0.5% higher and require larger down payments.
FHA loans allow lower credit scores and 3.5% down, but the upfront mortgage insurance premium costs 1.75% of the loan. That's $21,000 on a $1.2M loan, which kills the deal for most buyers here.
Conventional loans include conforming loans but also cover jumbos. When someone says conventional, ask whether they mean conforming specifically.
Los Gatos has older homes and strict building codes. Appraisers flag foundation issues, unpermitted additions, and retrofits more than in newer areas. These can tank conforming loan approvals.
The town's desirability means bidding wars. Conforming loans with 5% down lose to cash or 20% down buyers almost every time. You need a strong offer strategy.
HOA budgets in Los Gatos condos sometimes show deferred maintenance. Lenders reject projects with less than 10% reserves or pending special assessments.
$1,249,125 for single-family homes in Santa Clara County. Anything above that requires a jumbo loan with different terms.
Yes, but lenders need two years of RSU history and vesting schedules. One-time grants or recent equity comp won't count toward qualifying income.
$300-500 monthly on loans near the conforming limit with less than 20% down. Cost drops as your equity increases.
Yes, if the HOA meets Fannie Mae standards and your lender approves the project. Not all lenders accept all condo complexes.
Rate cuts are expected later in 2026, but inventory moves fast here. Waiting could mean losing the right property for a modest rate improvement.
680 or higher gets you into the best pricing tiers. Below that, you'll pay higher rates even if you qualify at 620.
Conforming Loans in Los Gatos