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in San Jose, CA
San Jose is one of the priciest markets in California. Choosing the right loan program here directly affects your buying power.
FHA and VA loans both carry government backing. But they serve very different borrowers with very different rules.
FHA loans require just 3.5% down with a 580 credit score. Drop below 580 and you need 10% down — lenders get strict here.
Every FHA loan carries mortgage insurance. You pay it upfront and monthly for the life of the loan in most cases.
VA loans are zero down, no private mortgage insurance, and typically carry lower rates than FHA. Hard to beat if you qualify.
Eligibility requires military service — veterans, active-duty, and surviving spouses. A Certificate of Eligibility confirms your status.
The biggest gap is mortgage insurance. VA has none. FHA charges it monthly, which adds real cost in a high-price market like San Jose.
VA rates typically run lower than FHA rates. On a San Jose-sized loan, that difference compounds fast over 30 years. Rates vary by borrower profile and market conditions.
If you have VA eligibility, use it. Zero down and no mortgage insurance is the stronger deal almost every time in this market.
If you are not a veteran, FHA is a solid path — especially with credit below 700 or a down payment under 10%.
Yes, full VA entitlement means no down payment required regardless of purchase price. You still pay closing costs unless negotiated otherwise.
Yes, FHA loan limits apply in Santa Clara County. Homes priced above those limits require a different loan program.
VA typically wins. No mortgage insurance and lower rates mean a lower monthly payment on the same loan amount. Rates vary by borrower profile and market conditions.
Yes, if you meet VA eligibility you can choose either program. Most veterans choose VA for the better terms.
VA requires an appraisal by a VA-approved appraiser. That appraisal includes basic property condition requirements that FHA also enforces.
FHA is more flexible on credit scores. VA has its own guidelines but no hard minimum score — individual lenders set their own overlays.