Question 1

Can I use a VA loan to buy in Palo Alto?

Accepted Answer

Yes. VA loans work in high-cost counties like Santa Clara. Confirm your entitlement covers the purchase price with your broker.

Question 2

Does FHA have loan limits in Santa Clara County?

Accepted Answer

Yes. Santa Clara County qualifies for high-balance FHA limits. Confirm the current limit before shopping at Palo Alto price points.

Question 3

Which loan has a lower interest rate — FHA or VA?

Accepted Answer

VA rates are typically lower than FHA rates for qualified borrowers. Rates vary by borrower profile and market conditions.

Question 4

Can I avoid mortgage insurance on an FHA loan?

Accepted Answer

Not without refinancing into a conventional loan later. FHA mortgage insurance stays for the loan's life unless you refinance out.

Question 5

What's the VA funding fee and how much is it?

Accepted Answer

It's a one-time fee charged at closing and rolled into the loan. The amount depends on down payment, loan type, and prior VA use.

Question 6

Do I need perfect credit for a VA loan?

Accepted Answer

No. VA has no official minimum credit score, but most lenders require at least 620. Lender overlays vary.

FHA vs VA Loans in Palo Alto: Which One Works for You?