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in San Jose, CA
San Jose is one of the most expensive housing markets in California. Choosing the right loan isn't just paperwork — it's thousands of dollars over the life of the loan.
Conventional and VA loans both work here, but they serve very different borrowers. One requires solid credit and a down payment. The other requires a DD-214.
Conventional loans aren't backed by any government agency. That means lenders set their own risk standards — and you need to meet them.
Most lenders want at least a 620 credit score and 3-5% down. Put down 20% and you skip private mortgage insurance entirely. That matters a lot on a San Jose price tag.
Conventional loans work for primary homes, second homes, and investment properties. VA doesn't cover those last two.
VA loans are for veterans, active-duty service members, and eligible surviving spouses. If you qualify, this is almost always the better loan.
Zero down payment. No private mortgage insurance. Rates typically run below conventional. The VA funding fee applies, but sellers can pay your closing costs.
There's no VA loan limit for eligible borrowers with full entitlement. In San Jose, that's a serious advantage.
The biggest split is eligibility. VA is locked to military-connected borrowers. Conventional is open to anyone who meets credit and income requirements.
HousingWire flagged the 30-year fixed hitting 6.57% recently, with applications dropping over 10% week-over-week. VA rates typically run lower than that benchmark — rates vary by borrower profile and market conditions.
Conventional requires PMI below 20% down. VA never does. On a high-value San Jose purchase, that monthly PMI difference adds up fast.
If you have VA eligibility, use it. Zero down and no PMI in a market like San Jose is a significant financial edge over conventional financing.
Go conventional if you're buying a second home or investment property, or if your VA entitlement is tied up on another loan. Also consider it if you have 20% down and strong credit — the gap between the two narrows considerably.
Not sure which fits your deal? We shop both across 200+ wholesale lenders. The right answer depends on your certificate of eligibility, credit profile, and purchase price.
Yes. Eligible borrowers with full VA entitlement can buy with zero down in San Jose. There's no loan limit tied to the zero-down benefit.
No. VA loans don't charge PMI. You pay a one-time funding fee instead, which can be financed into the loan.
Most lenders require at least 620. Better rates come with scores above 740. Your rate depends on your full credit profile.
No. VA loans are for primary residences only. Use a conventional loan for rental or investment properties.
VA rates typically run lower than conventional. Rates vary by borrower profile and market conditions — we'll show you both side by side.
Yes, with remaining VA entitlement. Many borrowers use VA on a primary home and conventional on a second or investment property.