Question 1

Can I use a VA loan to buy in Monte Sereno?

Accepted Answer

Yes, if you have VA entitlement. High-cost county limits in Santa Clara may support the purchase price.

Question 2

Does FHA have a loan limit in Santa Clara County?

Accepted Answer

Yes. FHA sets county-level limits. Santa Clara County qualifies as high-cost, so limits are higher than national baseline.

Question 3

Which loan has lower monthly payments?

Accepted Answer

VA typically wins. No mortgage insurance premium means a lower payment even if the rate is similar to FHA.

Question 4

Can I avoid mortgage insurance with FHA?

Accepted Answer

Not easily. FHA MIP stays for the loan life unless you put 10% down — then it drops after 11 years.

Question 5

What credit score do I need for each loan?

Accepted Answer

FHA allows 580 for 3.5% down. VA has no official minimum, but most lenders want at least 620.

Question 6

Is the VA funding fee worth it compared to FHA MIP?

Accepted Answer

Usually yes. The funding fee is a one-time cost. FHA MIP compounds monthly for years. VA wins long-term.

FHA vs VA Loans in Monte Sereno, CA