Question 1

What credit score do I need to buy in San Jose?

Accepted Answer

FHA loans require 580 minimum. Conventional loans typically need 620 or higher. Jumbo lenders in Santa Clara County often want 700+.

Question 2

How much do I need for a down payment in San Jose?

Accepted Answer

FHA requires 3.5% down. Conventional can go as low as 3%. Jumbo loans here often require 10-20% given the price points.

Question 3

What counts as a jumbo loan in Santa Clara County?

Accepted Answer

Conforming loan limits for Santa Clara County sit at $1,249,125 as of 2026. Anything above that is jumbo and requires a different lender pool.

Question 4

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

Accepted Answer

Most purchases close in 21-30 days with clean documentation. Jumbo and non-QM loans can take 30-45 days depending on lender.

Question 5

What documents do I need to apply for a mortgage?

Accepted Answer

Bring two years of tax returns, two months of bank statements, pay stubs, and a government-issued ID. Self-employed borrowers may need P&L statements too.

Question 6

What is a bank statement loan and who is it for?

Accepted Answer

Bank statement loans use 12-24 months of deposits instead of tax returns to verify income. They're built for self-employed borrowers whose write-offs hurt their taxable income.

Question 7

I'm a 1099 contractor. Can I still get a mortgage in San Jose?

Accepted Answer

Yes. We offer 1099-specific loan programs that use your contract income directly. You don't need two full years of self-employment in all cases.

Question 8

What is a DSCR loan and can I use it for San Jose investment properties?

Accepted Answer

DSCR — Debt Service Coverage Ratio — loans qualify you based on rental income, not personal income. They work well for investors buying income-producing properties in San Jose.

Question 9

Does San Jose have any down payment assistance programs?

Accepted Answer

Santa Clara County has local DPA programs, and CalHFA offers statewide assistance for first-time buyers. Eligibility depends on income limits and purchase price caps.

Question 10

What are closing costs in San Jose?

Accepted Answer

Expect 2-3% of the purchase price in closing costs. On a $1.2M home, that's $24,000-$36,000. Some costs are negotiable with the seller.

Question 11

What is PMI and when do I have to pay it?

Accepted Answer

PMI — private mortgage insurance — is required on conventional loans when you put less than 20% down. It typically costs 0.5-1.5% of your loan amount per year.

Question 12

Can I avoid PMI without 20% down in San Jose?

Accepted Answer

Yes. Lender-paid PMI or piggyback loan structures can eliminate the monthly PMI payment. Trade-offs exist — your rate or second loan balance increases instead.

Question 13

FHA vs. conventional — which is better for San Jose buyers?

Accepted Answer

FHA has looser credit requirements but adds mortgage insurance for the life of the loan. Conventional makes more sense if you have 620+ credit and 5%+ down.

Question 14

Are ARMs a good fit for San Jose buyers?

Accepted Answer

A 5/1 or 7/1 ARM gives you a lower initial rate for 5-7 years. If you plan to sell or refi before the fixed period ends, an ARM can save real money here.

Question 15

What is a portfolio ARM?

Accepted Answer

Portfolio ARMs are adjustable-rate loans held by the lender, not sold to investors. They offer flexible underwriting — useful for high-net-worth borrowers with complex income.

Question 16

Can a foreign national buy property in San Jose?

Accepted Answer

Yes. Foreign national loan programs are available without a U.S. credit history or Social Security number. Down payment requirements are typically higher — often 25-30%.

Question 17

What is an ITIN loan?

Accepted Answer

ITIN loans allow borrowers without a Social Security number to finance a home using their Individual Taxpayer Identification Number. Several of our lenders offer this in Santa Clara County.

Question 18

What is asset depletion and who qualifies?

Accepted Answer

Asset depletion uses your liquid assets — savings, investments — as calculated income. Retirees and high-net-worth borrowers with low documented income use this often.

Question 19

What is a bridge loan and when does it make sense in San Jose?

Accepted Answer

A bridge loan lets you tap your current home's equity to buy before you sell. In San Jose's fast market, that can mean the difference between winning and losing an offer.

Question 20

What is an interest-only mortgage?

Accepted Answer

Interest-only loans let you pay just interest for a set period — often 5-10 years. Monthly payments are lower, but your balance doesn't go down during that time.

Question 21

What is a home equity line of credit (HELOC)?

Accepted Answer

A HELOC is a revolving credit line tied to your home's equity. You draw funds as needed and only pay interest on what you use — flexible for San Jose homeowners with major equity.

Question 22

How does a cash-out refinance work in San Jose?

Accepted Answer

You refinance your existing mortgage into a larger loan and take the difference in cash. San Jose homeowners with significant equity use this for renovations, investments, or debt payoff.

Question 23

What is a reverse mortgage and who qualifies?

Accepted Answer

Reverse mortgages are available to homeowners 62 and older. You convert home equity to cash without monthly payments — you repay when you sell or leave the home.

Question 24

Can I get a VA loan in San Jose?

Accepted Answer

Yes. VA loans require no down payment and no PMI for eligible veterans and active-duty service members. They're one of the strongest loan programs available in Santa Clara County.

Question 25

Are USDA loans available in San Jose?

Accepted Answer

Most of San Jose proper is ineligible for USDA loans due to population density. Outlying rural areas of Santa Clara County may qualify — ask us to check the specific address.

Question 26

What is a construction loan and how does it work?

Accepted Answer

Construction loans fund the building process in draws as work is completed. Once construction is done, it typically converts to a permanent mortgage.

Question 27

What is a community mortgage program?

Accepted Answer

Community mortgage programs are designed for low-to-moderate income buyers in specific areas. Income limits and property location both affect eligibility.

Question 28

What is an equity appreciation loan?

Accepted Answer

Equity appreciation loans let you access capital now in exchange for a share of future home value gains. They're not traditional debt — no monthly payments in most structures.

Question 29

How does SRK CAPITAL find me the best rate?

Accepted Answer

We shop your loan across 200+ wholesale lenders simultaneously. Wholesale pricing is consistently lower than retail bank rates — that's the broker advantage.

Question 30

What is a conforming loan in Santa Clara County?

Accepted Answer

A conforming loan falls within Fannie Mae and Freddie Mac purchase limits. In Santa Clara County, that limit is $1,249,125 as of 2025 — higher than most of the country.

Question 31

What is the difference between pre-qualification and pre-approval?

Accepted Answer

Pre-qualification is a rough estimate based on self-reported data. Pre-approval involves verified income, credit, and assets — sellers in San Jose take pre-approval seriously.

Question 32

How does my debt-to-income ratio affect my mortgage?

Accepted Answer

DTI compares your monthly debt payments to your gross income. Most conventional lenders cap DTI at 45-50%. Exceeding that limit shrinks your loan options fast.

Question 33

What happens if I'm self-employed and my tax returns show low income?

Accepted Answer

Bank statement or P&L loan programs use actual cash flow instead of taxable income. We see this constantly with San Jose tech founders and contractors.

Question 34

Can I use RSUs or stock options as income for a mortgage?

Accepted Answer

Yes, if they're vested and have a documented history. Lenders typically want a two-year track record and confirmation that RSU grants will continue. Rates vary by borrower profile and market conditions.

Question 35

What is a profit and loss statement loan?

Accepted Answer

P&L loans use a CPA-prepared profit and loss statement to document income instead of tax returns. They're a good fit for business owners with strong revenue but heavy deductions.

Question 36

How many months of reserves do I need for a jumbo loan in San Jose?

Accepted Answer

Jumbo lenders typically want 6-12 months of reserves — meaning 6-12 months of mortgage payments sitting in verifiable accounts after closing.

Question 37

What are mortgage points and should I buy them?

Accepted Answer

One point costs 1% of your loan amount and lowers your rate. Buying points makes sense if you plan to stay in the home long enough to recoup the upfront cost.

Question 38

How does a rate lock work?

Accepted Answer

A rate lock holds your interest rate for a set period — usually 30, 45, or 60 days — while your loan closes. Extensions are available but may cost extra.

Question 39

What is an appraisal and do I always need one?

Accepted Answer

An appraisal is a licensed professional's opinion of your home's value. Most loans require it. Some refinances qualify for appraisal waivers through automated systems.

Question 40

Can I get a hard money loan for a San Jose property?

Accepted Answer

Yes. Hard money loans close fast — sometimes in days — based on property value, not borrower credit. They carry higher rates and short terms, built for fix-and-flip or bridge scenarios.

San Jose Mortgage FAQs: Real Answers From Your Broker