Question 1

What is the conforming loan limit in Santa Clara County for 2026?

Accepted Answer

The 2026 conforming limit is $1,249,125. Loans above this amount are jumbo loans and typically require 20% down and stronger credit.

Question 2

Is Santa Clara County an FHA high-cost area?

Accepted Answer

Yes. Santa Clara County is designated an FHA high-cost area. FHA loan limits match the conforming limit of $1,249,125 for 2026.

Question 3

Is Santa Clara County a VA high-cost area?

Accepted Answer

Yes. Santa Clara County qualifies as a VA high-cost area. VA loan limits are $1,249,125 for 2026, matching the conforming ceiling.

Question 4

What down payment do most San Jose buyers put down?

Accepted Answer

Conventional buyers typically put 5% to 20% down. FHA requires 3.5% minimum with 580+ FICO. VA buyers can purchase with zero down if eligible.

Question 5

How does the Santa Clara University medical school affect the San Jose market?

Accepted Answer

The new medical school brings physician training and professional jobs to the region. This supports long-term housing demand in San Jose.

Question 6

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require 620+ FICO for conventional loans. Stronger scores (740+) qualify for better rates. FHA allows 580+ FICO with 3.5% down.

Question 7

Do I need 20% down to avoid PMI on a conventional loan?

Accepted Answer

Yes. 20% down (80% LTV) eliminates PMI entirely. Below 20% down, PMI applies until you reach 78% LTV or refinance.

Question 8

What is the median household income in Santa Clara County?

Accepted Answer

Santa Clara County's median household income is $159,674. This figure helps lenders assess debt-to-income ratios for qualification.

Question 9

Can I get a VA loan with zero down in San Jose?

Accepted Answer

Yes. VA-eligible borrowers can purchase with zero down. A funding fee applies (2.15% at zero down for first-time use). No PMI required.

Question 10

What is an FHA loan and how does it work in San Jose?

Accepted Answer

FHA loans require 3.5% down minimum and allow lower credit scores. Mortgage insurance (MIP) runs for the life of the loan if down is under 10%.

Question 11

How long does it take to close on a home in San Jose?

Accepted Answer

Typical closing timelines run 30 to 45 days. Complex transactions or appraisal issues can extend this. Your lender will provide a specific timeline.

Question 12

What happens if my home appraises below the purchase price?

Accepted Answer

If the appraisal is low, you can renegotiate, bring more cash, or walk away. Your lender will not fund above the appraised value.

Question 13

Are jumbo loans available in San Jose?

Accepted Answer

Yes. Jumbo loans (above $1,249,125) are available but require 20%+ down and typically 700+ FICO. Rates usually run 0.125% to 0.5% above conforming.

Question 14

What is the difference between a 15-year and 30-year mortgage?

Accepted Answer

A 30-year mortgage has lower monthly payments but costs more in interest. A 15-year mortgage builds equity faster and costs less overall.

Question 15

Can I use a gift for my down payment in San Jose?

Accepted Answer

Yes. Most lenders allow down-payment gifts from family members. You'll need a gift letter stating the money is a gift, not a loan.

San Jose mortgage questions answered