Question 1

What's the 2026 conforming loan limit in Santa Clara County?

Accepted Answer

The conforming limit is $1,249,125 for 2026. Conventional, FHA, and VA loans all cap at this amount. Jumbo financing applies above it.

Question 2

Do I need 20% down to buy in Sunnyvale?

Accepted Answer

No. Conventional loans accept 3% to 5% down with PMI. FHA allows 3.5% down with a 580+ credit score. VA and USDA offer zero-down options if you qualify.

Question 3

Is Santa Clara County an FHA high-cost area?

Accepted Answer

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

Question 4

What credit score do I need to qualify for a mortgage in Sunnyvale?

Accepted Answer

Conventional loans typically require 620+. FHA accepts 580+ for the 3.5% down program. VA has no published minimum but lenders usually want 620+.

Question 5

How much does PMI cost on a conventional loan?

Accepted Answer

PMI typically runs 0.5% to 1.5% annually on the loan amount. It depends on your down payment and credit score. PMI cancels at 78% LTV automatically.

Question 6

Can I use a VA loan in Sunnyvale if I'm a veteran?

Accepted Answer

Yes. VA loans are available throughout Santa Clara County with zero down. You'll need a Certificate of Eligibility. The funding fee replaces PMI at 2.15% for first use.

Question 7

What's the difference between FHA and conventional financing?

Accepted Answer

FHA requires 3.5% down minimum and carries MIP for life if down payment is under 10%. Conventional needs 5% down and PMI cancels at 78% LTV.

Question 8

Do I qualify for a USDA loan in Sunnyvale?

Accepted Answer

USDA loans require a rural-eligible property and household income capped at the area-specific threshold for this county. Sunnyvale's urban location makes USDA unlikely.

Question 9

How long does it take to close a mortgage in Sunnyvale?

Accepted Answer

Most mortgages close in 30 to 45 days. FHA and VA can move faster with expedited documentation. Appraisal delays and title issues are the main variables.

Question 10

What happens to my rate if I lock it?

Accepted Answer

A rate lock freezes your interest rate for a set period, typically 30 to 60 days. If rates rise, your locked rate holds. If rates fall, you cannot benefit unless you float down.

Question 11

Does the new medical school in Santa Clara affect Sunnyvale property values?

Accepted Answer

Institutional investment like a new medical school typically signals regional growth. It draws talent and spending power to the area, which benefits nearby markets.

Question 12

What's the income requirement to qualify in Santa Clara County?

Accepted Answer

Lenders use debt-to-income ratios, not a hard income floor. Most want your housing payment under 28% of gross income. At $159,674 median, most local buyers qualify.

Question 13

Can I get a jumbo loan above $1,249,125 in Sunnyvale?

Accepted Answer

Yes. Jumbo loans exceed the conforming limit and typically require 20% down and 700+ credit. Rates usually run 0.125% to 0.5% above conforming.

Question 14

What is the VA funding fee and can it be waived?

Accepted Answer

The VA funding fee is 2.15% at zero down for first-time use. It replaces PMI and rolls into your loan. A 10% or higher VA disability rating exempts you from the fee.

Sunnyvale mortgage questions answered