Loading
in Santa Clara, CA
Santa Clara is one of the priciest markets in the country. Picking the right loan program matters more here than almost anywhere else.
FHA and VA loans are both government-backed. But they serve very different borrowers with very different requirements.
FHA loans are insured by the Federal Housing Administration. They're built for buyers who can't qualify for conventional financing.
You need a 580 credit score for 3.5% down. Drop below 580 and lenders require 10% down. MIP — mortgage insurance premium — is required regardless of your down payment size.
VA loans are guaranteed by the Department of Veterans Affairs. They're available to eligible veterans, active-duty service members, and surviving spouses.
No down payment. No monthly mortgage insurance. Those two features alone save VA buyers tens of thousands in Silicon Valley.
The biggest gap is mortgage insurance. FHA buyers pay MIP every month. VA buyers pay none — ever.
VA also wins on credit flexibility in practice. Most VA lenders work with scores around 580-620. FHA sets a similar floor, but MIP costs make FHA more expensive long-term at any score.
If you served and you're eligible, VA almost always wins. The savings on mortgage insurance alone are significant in Santa Clara price ranges.
If you're not a veteran, FHA is a strong path. It gets buyers in with limited savings and credit that conventional lenders won't touch.
Yes. VA requires zero down payment. You'll still need funds for closing costs, but sellers can cover those.
Yes. FHA loan limits apply by county. Santa Clara County has high-cost limits — confirm current limits before you shop.
It's a one-time fee rolled into your loan. Disabled veterans are typically exempt — confirm your status with your lender.
VA rates are often lower than FHA rates. Rates vary by borrower profile and market conditions.
Yes. If you qualify for VA, you can still choose FHA. Most veterans do better with VA when comparing total monthly cost.
Not necessarily. VA appraisals have specific requirements, but experienced lenders close VA loans on standard timelines.