Question 1

What is the FHA loan limit for Santa Clara County?

Accepted Answer

FHA sets county-level loan limits annually. Santa Clara County qualifies for high-cost limits — check current figures with us before assuming your target price works.

Question 2

Can I use FHA to buy a condo in Palo Alto?

Accepted Answer

Yes, but the condo project must be on FHA's approved list. Many Palo Alto condo buildings are not FHA-approved, which narrows your options.

Question 3

Does FHA mortgage insurance ever go away?

Accepted Answer

Only if you put 10% or more down. Below that threshold, MIP stays for the life of the loan — typically removed only by refinancing.

Question 4

Why do sellers sometimes reject FHA offers?

Accepted Answer

FHA appraisals require the property to meet specific condition standards. Sellers worry a deal will fall apart if repairs are required before closing.

Question 5

Is FHA a good fit for Palo Alto's price range?

Accepted Answer

Rarely on single-family homes. The loan limit versus local prices creates a gap that requires significant cash. It works better on lower-priced condos or townhomes.

Question 6

What's the minimum down payment for an FHA loan?

Accepted Answer

3.5% down with a 580+ credit score. That said, in Palo Alto the loan limit caps how much FHA will cover, so your actual cash need may be much higher.

FHA Loans in Palo Alto: What You Need to Know