Question 1

What is the loan limit for both programs in Santa Clara County?

Accepted Answer

Both conventional conforming and FHA share a limit of $1,209,750 in Santa Clara County. Anything above that requires a jumbo loan.

Question 2

Can I remove mortgage insurance on an FHA loan?

Accepted Answer

On most FHA loans originated after 2013, MIP stays for the loan's full term. The only exit is refinancing into a conventional loan.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Most conventional lenders want at least 620. But in Los Gatos price ranges, you want 700+ to get competitive rates.

Question 4

Is a 3.5% down payment realistic in Los Gatos?

Accepted Answer

Technically yes — FHA allows it at 580+ credit. But seller perception in this market strongly favors larger down payments.

Question 5

Which loan has lower monthly payments?

Accepted Answer

It depends on your credit score and down payment. Conventional is usually cheaper monthly once you cross 700 credit and 10% down.

Question 6

Can I use FHA financing on a condo in Los Gatos?

Accepted Answer

Only if the condo complex is FHA-approved. That approval list is limited — confirm eligibility before you write an offer.

Conventional vs FHA Loans in Los Gatos, CA