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Milpitas sits in the heart of Silicon Valley. Home prices here run high, even by Bay Area standards.
FHA loans cap at the county loan limit — Santa Clara County has one of the highest FHA limits in the country. That matters here.
580
Min Credit Score (3.5% Down)
3.5%
Minimum Down Payment
1.75% of loan
Upfront MIP
Up to 57%
Max DTI (Some Files)
High-cost limit applies
County Loan Limit
You need a 580 credit score for 3.5% down. Drop below 580 and you're looking at 10% down minimum.
FHA allows gift funds for the down payment. That's a real advantage for buyers getting family help in a high-cost market.
Not every lender prices FHA loans the same way. Mortgage insurance and rate spreads vary more than most buyers realize.
We shop FHA across 200+ wholesale lenders. Retail banks rarely beat what we can find for Milpitas buyers.
FHA has upfront mortgage insurance: 1.75% of the loan amount. Most buyers roll it into the loan balance.
Annual MIP runs for the life of the loan if you put less than 10% down. That's a real cost to weigh against conventional options.
Conventional loans drop PMI once you hit 20% equity. FHA doesn't work that way — MIP sticks unless you refinance.
If your credit is above 680 and you have 5% down, run both scenarios. Conventional may cost less over time in Milpitas.
Milpitas is a competitive market. Sellers sometimes hesitate on FHA offers, expecting appraisal conditions.
FHA appraisals check property condition — not just value. Older homes with deferred maintenance can create friction at the appraisal stage.
Santa Clara County qualifies for high-cost FHA limits. Check current limits with us — they adjust annually and directly affect your purchase power in Milpitas.
Yes, but the condo project must be FHA-approved or qualify for spot approval. Many newer Milpitas developments haven't gone through FHA approval yet.
Upfront MIP is 1.75% of the loan amount. Annual MIP varies by loan size and term — rates vary by borrower profile and market conditions.
Yes. The entire 3.5% down payment can come from a family gift. The donor must provide a gift letter and lenders will verify the transfer.
Depends on your credit score and down payment. Below 640 credit, FHA usually wins. Above 700 with 5% down, conventional often costs less over time.
Generally yes, if you're in the same field. FHA cares about two-year employment history — a job change in the same industry rarely kills a deal.
FHA Loans in Milpitas