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San Jose sits in one of the most expensive housing markets in the country. FHA loans give buyers a real foothold here when conventional financing feels out of reach.
Santa Clara County home prices push against FHA loan limits hard. Knowing those limits before you shop saves you from falling for properties the loan won't cover.
580
Min Credit Score (3.5% down)
3.5%
Minimum Down Payment
43–50%
Max DTI (typical)
Primary Residence Only
Loan Purpose
Yes — upfront + monthly
MIP Required
FHA Loans in San Jose
FHA requires a minimum 580 credit score for 3.5% down. Drop below 580 and you'll need 10% down — if a lender will touch it at all.
Debt-to-income ratio matters here. Most FHA lenders want your total monthly debts under 43% of gross income, though some go higher with compensating factors.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in San Jose.
San Jose sits in one of the most expensive housing markets in the country. FHA loans give buyers a real foothold here when conventional financing feels out of reach.
Santa Clara County home prices push against FHA loan limits hard. Knowing those limits before you shop saves you from falling for properties the loan won't cover.
FHA requires a minimum 580 credit score for 3.5% down. Drop below 580 and you'll need 10% down — if a lender will touch it at all.
Not every lender offers FHA in Santa Clara County. Some retail banks overlay stricter credit requirements on top of FHA's minimums — that's called a lender overlay.
Wholesale lenders we access often have fewer overlays than big banks. That means borrowers who get turned down at Chase or Wells may still get approved through us.
San Jose sellers know their market. In multiple-offer situations, FHA offers sometimes get passed over for conventional. Your agent's cover letter and your pre-approval strength matter.
FHA's mortgage insurance premium — MIP — never drops off if you put less than 10% down on a loan after June 2013. Build a plan to refinance into conventional once you hit 20% equity.
Conventional loans drop PMI automatically at 20% equity. FHA MIP doesn't — that's a real long-term cost difference in a market where values rise fast.
VA loans beat FHA on cost if you qualify. No MIP, no down payment required. If you've served, run the VA numbers first before defaulting to FHA.
Santa Clara County has high FHA loan limits given its designation as a high-cost area. That higher ceiling makes FHA viable for more San Jose properties than in cheaper California counties.
Condos need FHA approval — the project, not just the unit. Many San Jose condo buildings aren't on the FHA approved list. Check the HUD condo lookup before you fall in love with a unit.
Santa Clara County qualifies as a high-cost area, so FHA limits are higher than national baselines. Check HUD's current limit table — they adjust annually.
Yes, but the condo project must be on HUD's approved list. Many San Jose buildings aren't approved. Verify before making an offer.
With a 580+ credit score, you need 3.5% down. On a high-priced San Jose property, that still adds up — budget accordingly.
Not if you put less than 10% down on a loan originated after June 2013. Plan to refinance into conventional once you build 20% equity.
Some won't in a competitive multi-offer situation. A strong pre-approval and experienced agent help. It's a real factor in this market.
Yes. FHA allows self-employment income with two years of tax returns. Income must be stable or increasing year-over-year to count.