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Milpitas sits between San Jose and Fremont, where tech salaries often push buyers toward jumbo territory. Conventional loans work here if you stay under $832,750 on a single-family home—above that, you're shopping jumbo rates.
Fed officials project rate cuts later in 2026, but not immediately. Current conventional rates hover near four-year lows. Borrowers with strong credit and 20% down can lock in the tightest pricing available.
Conventional Loans in Milpitas
You need 620 minimum credit for most conventional programs. Lenders prefer 680+ for competitive rates. Put down 3% if you must, but expect PMI until you hit 20% equity.
Debt-to-income caps at 50% for most files. Tech workers with RSUs or bonuses need two years of vesting history. Lenders average stock compensation when underwriting—one strong year doesn't count.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Milpitas.
Milpitas sits between San Jose and Fremont, where tech salaries often push buyers toward jumbo territory. Conventional loans work here if you stay under $832,750 on a single-family home—above that, you're shopping jumbo rates.
Fed officials project rate cuts later in 2026, but not immediately. Current conventional rates hover near four-year lows. Borrowers with strong credit and 20% down can lock in the tightest pricing available.
You need 620 minimum credit for most conventional programs. Lenders prefer 680+ for competitive rates. Put down 3% if you must, but expect PMI until you hit 20% equity.
We shop 200+ wholesale lenders for conventional loans. Rate differences between best and worst pricing run 0.375% to 0.5%—that's $200+ monthly on a $700,000 loan.
Credit unions offer aggressive rates but cap loan amounts lower than national lenders. Portfolio lenders sometimes waive PMI at 10% down if you accept a slightly higher rate. Every borrower profile fits a different lender matrix.
Milpitas buyers often stretch to afford homes near good schools or BART access. Conventional loans beat FHA here—no upfront mortgage insurance premium and PMI drops off at 78% loan-to-value.
I see tech employees compare 5% down conventional against 3.5% FHA. FHA costs more long-term even with the smaller down payment. Run both scenarios before you decide based on cash reserves alone.
Conventional loans cost less than FHA for borrowers with 680+ credit. Jumbo loans take over above $832,750—rates run 0.25% to 0.5% higher and require 20% down minimum.
ARMs make sense if you plan to move within seven years. We're seeing 7/1 ARMs price 0.5% below 30-year fixed. Milpitas proximity to job hubs means buyers relocate more often than suburban markets.
Milpitas condos near Great Mall or McCarthy Ranch need HOA review. Lenders reject properties with deferred maintenance or low reserve funds. We order HOA questionnaires early to avoid delays.
Older homes near Calaveras Boulevard sometimes need foundation inspections. Conventional appraisers flag deferred repairs that FHA might require fixed before closing. Budget time for inspection negotiations.
You need 620 minimum, but 680+ unlocks better rates. Most Milpitas buyers with tech jobs qualify at higher tiers.
Lenders average two years of vesting history. One strong year doesn't count—you need consistent stock compensation over time.
You can put down 3%, but 20% avoids PMI and gets the best rates. Most Milpitas homes require larger down payments to stay competitive.
The limit is $832,750 for single-family homes. Above that, you need a jumbo loan with stricter requirements.
Conventional beats FHA with 680+ credit. You avoid upfront mortgage insurance and PMI drops off automatically at 78% LTV.
Lenders review HOA financials and maintenance records. Properties with low reserves or deferred maintenance get rejected—we order questionnaires early.