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Los Gatos sits in one of the most expensive ZIP codes in Santa Clara County. Home prices here push hard against FHA loan limits.
The 2026 FHA loan limit for Santa Clara County is $1,249,125. That's the high-cost ceiling — and you'll likely need every dollar of it here.
$1,249,125
FHA Loan Limit
580 (3.5% down)
Min Credit Score
3.5%
Min Down Payment
1.75% of loan
Upfront MIP
Up to 57%
Max DTI
FHA Loans in Los Gatos
FHA requires a 580 credit score for 3.5% down. Drop below 580 and you need 10% down — some lenders cut off at 620 regardless.
Debt-to-income (DTI) ratios can go up to 57% with strong compensating factors. That flexibility helps buyers in high-cost areas like Los Gatos.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Los Gatos.
Los Gatos sits in one of the most expensive ZIP codes in Santa Clara County. Home prices here push hard against FHA loan limits.
The 2026 FHA loan limit for Santa Clara County is $1,249,125. That's the high-cost ceiling — and you'll likely need every dollar of it here.
FHA requires a 580 credit score for 3.5% down. Drop below 580 and you need 10% down — some lenders cut off at 620 regardless.
Most retail banks offer FHA loans but overlay strict credit rules on top of FHA minimums. Wholesale lenders are looser on overlays.
We work with 200+ wholesale lenders. That matters when one lender declines at 600 and another approves at the same score.
FHA loans require mortgage insurance regardless of your down payment. You pay an upfront premium of 1.75% plus monthly MIP — that adds up fast on a $1M+ purchase.
In Los Gatos, the MIP cost often pushes buyers toward conventional loans once their credit hits 680+. Run the numbers on both before committing.
Conventional loans at 5% down require no upfront insurance premium. With strong credit, monthly PMI is cheaper than FHA's MIP.
VA loans are better if you qualify — zero down, no MIP. USDA doesn't apply here; Los Gatos isn't eligible rural territory.
Los Gatos has a mix of single-family homes and condos near downtown. Condos require FHA condo approval — many HOA complexes here aren't on the approved list.
Seller competition is real in this market. Some sellers see FHA offers as weaker. A strong pre-approval letter and clean terms help close that gap.
The 2026 FHA limit for Santa Clara County is $1,249,125. That's the high-cost ceiling set by HUD.
Yes, but the condo complex must be on HUD's approved list. Many complexes in Los Gatos are not approved — check before you make an offer.
With a 580+ credit score, 3.5% down is the minimum. Below 580, lenders require 10% down.
Not with under 10% down — MIP stays for the life of the loan. Putting 10% or more down cuts MIP to 11 years.
It depends on the property. Entry-level condos and townhomes can work. Most single-family homes exceed FHA limits or appraisal thresholds.
Yes, legally sellers can decline any offer. FHA's stricter appraisal rules make some sellers prefer conventional buyers in competitive situations.