Question 1

What is the conforming loan limit in Santa Clara County?

Accepted Answer

Santa Clara County qualifies for high-cost area limits set by the FHFA. Loans above that limit require jumbo financing with different approval standards.

Question 2

Can I use RSU income to qualify for a conventional loan in Palo Alto?

Accepted Answer

Yes, but lenders need a two-year vesting history and confirmation the RSUs will continue. Inconsistent vesting schedules can complicate income calculations.

Question 3

Do I need 20% down for a conventional loan here?

Accepted Answer

No. Some programs allow as little as 3% down. But anything below 20% adds PMI — private mortgage insurance — to your monthly payment.

Question 4

How does a conventional loan differ from a jumbo loan in Palo Alto?

Accepted Answer

Conventional loans stay at or below the conforming limit and follow Fannie Mae or Freddie Mac guidelines. Jumbo loans are larger and carry stricter requirements.

Question 5

Will a condo in Palo Alto qualify for conventional financing?

Accepted Answer

It depends on the HOA's financial health, owner-occupancy rate, and litigation status. Some Palo Alto condo buildings don't pass Fannie Mae's project review.

Question 6

Is an ARM a better option than a 30-year fixed in Palo Alto right now?

Accepted Answer

On a large loan, an ARM's lower initial rate can save thousands per month. The risk is rate adjustment after the fixed period ends. Rates vary by borrower profile and market conditions.

Conventional Loans in Palo Alto, CA