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 at or below this amount use conventional pricing. Anything above triggers jumbo rates and terms.

Question 2

Do I need 20% down to buy in Saratoga?

Accepted Answer

No. Conventional loans accept 5% to 10% down with PMI until you reach 20% equity. FHA allows 3.5% down with a 580+ credit score.

Question 3

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 ceiling of $1,249,125 for 2026.

Question 4

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require 620 minimum for conventional loans. Scores above 740 typically get the best rates. FHA accepts 580+, though 640+ opens better pricing.

Question 5

How does PMI work on a conventional loan?

Accepted Answer

PMI applies when you put down less than 20%. It cancels automatically at 78% loan-to-value. Monthly cost depends on your loan amount and credit.

Question 6

What's the difference between FHA and conventional?

Accepted Answer

FHA requires 3.5% down minimum with mortgage insurance for life if down payment is under 10%. Conventional starts at 5% down with PMI that eventually cancels.

Question 7

Is VA zero-down available in Saratoga?

Accepted Answer

Yes. VA loans allow zero-down for eligible veterans and active-duty service members. A funding fee replaces PMI (2.15% at zero down for first use).

Question 8

Can I get a VA loan if I have a disability rating?

Accepted Answer

Yes. A 10% or higher VA disability rating exempts you from the VA funding fee entirely. This saves thousands at closing.

Question 9

What does the Santa Clara County median income mean for me?

Accepted Answer

The county median is $159,674. Lenders use this to assess your debt-to-income ratio. Higher income relative to median strengthens your application.

Question 10

How does the new medical school affect Saratoga's market?

Accepted Answer

Santa Clara University and Sutter Health's medical school brings professional jobs and student housing demand to the region. This typically supports long-term home values.

Question 11

What's the difference between jumbo and conforming loans?

Accepted Answer

Jumbo loans exceed $1,249,125 and carry higher rates, typically 0.125% to 0.5% above conforming. Most require 20% down and 6-12 months of reserves.

Question 12

Do I need to sell my current home before buying?

Accepted Answer

No. Bridge loans and contingent offers let you buy before selling. However, carrying two mortgages requires strong income and reserves.

Question 13

How long does closing take in Santa Clara County?

Accepted Answer

Most closings take 30 to 45 days from application to funding. Appraisal delays can extend this. Lock your rate early to protect against shifts.

Saratoga mortgage questions answered