Question 1

What is the conforming loan limit in Morgan Hill for 2026?

Accepted Answer

The 2026 conforming loan limit in Santa Clara County is $1,249,125. Loans above that amount are jumbo and carry stricter requirements. Most Morgan Hill homes fall within conforming range.

Question 2

Is Santa Clara County an FHA high-cost area?

Accepted Answer

Yes. Santa Clara County is an FHA high-cost area, which means FHA loan limits match the conforming limit of $1,249,125 for 2026. This opens FHA financing to higher-priced homes.

Question 3

Is Santa Clara County a VA high-cost area?

Accepted Answer

Yes. VA loans in Santa Clara County can go up to $1,249,125 in 2026. Eligible veterans and active-duty service members can use the full limit with zero down.

Question 4

How much do I need to put down on a Morgan Hill home?

Accepted Answer

Conventional loans typically require 5% to 20% down. FHA requires 3.5% minimum with a 580+ FICO score. VA loans allow zero down for eligible borrowers. Your choice depends on savings and credit.

Question 5

What credit score do I need to buy in Morgan Hill?

Accepted Answer

Conventional loans typically require 620+ FICO; FHA accepts 580+. VA has no stated minimum but lenders often require 620+. Higher scores access better rates and terms.

Question 6

Do I need PMI on a conventional loan?

Accepted Answer

Yes, if you put down less than 20%. PMI cancels automatically at 78% LTV and can be requested at 80% LTV. At 20% down or more, PMI is not required.

Question 7

How does FHA mortgage insurance work?

Accepted Answer

FHA charges an upfront mortgage insurance premium of 1.75% rolled into the loan. Annual MIP runs for the loan's life if down payment is under 10%; with 10%+ down it cancels after 11 years.

Question 8

What is the VA funding fee?

Accepted Answer

The VA funding fee replaces PMI. At zero down, it's 2.15% of the loan amount. On subsequent VA loans, it rises to 3.3%. Veterans with a 10%+ disability rating are exempt.

Question 9

How does Santa Clara University's new medical school affect Morgan Hill's market?

Accepted Answer

Santa Clara University and Sutter Health are launching the Bay Area's first medical school in over 100 years. This brings physician training and professional jobs to the region, supporting long-term demand.

Question 10

What does the median household income in Santa Clara County tell me?

Accepted Answer

Santa Clara County's median household income is $159,674. This income level typically qualifies for conventional loans in the $600,000 to $800,000 range, depending on debt and down payment.

Question 11

Can I use a VA loan to buy a jumbo property in Morgan Hill?

Accepted Answer

Yes, if the property is under $1,249,125 in 2026. Above that limit, VA loans become jumbo and require stricter terms. Most Morgan Hill homes stay within the VA limit.

Question 12

What's the difference between FHA and conventional for Morgan Hill buyers?

Accepted Answer

FHA requires 3.5% down and accepts lower credit scores. Conventional typically needs 5% to 20% down and 620+ FICO. FHA carries mortgage insurance for life or 11 years; conventional PMI cancels at 78% LTV.

Question 13

Can I carry two mortgages while buying in Morgan Hill?

Accepted Answer

Yes. If you have equity or savings, you can own two homes during transition. Lenders will count both payments in your debt-to-income ratio, which may reduce your buying power.

Question 14

How long does closing typically take in Santa Clara County?

Accepted Answer

Conventional loans close in 30 to 45 days. FHA and VA can take 40 to 60 days due to appraisal and inspection requirements. Your lender's timeline depends on your specific situation.

Question 15

What local factors should I consider when buying in Morgan Hill?

Accepted Answer

Palo Alto's affordable housing development and Santa Clara's new medical school signal regional growth. Strong schools and job proximity make Morgan Hill attractive. These factors support long-term home value.

Morgan Hill mortgage questions answered