Every lender advertises the same list of loan programs. The difference is whether someone actually explains which one fits your file. Rosalio Hernandez (NMLS 251093) has placed San Jose buyers in every program on this page, and the right choice almost always comes down to three things: how much you are putting down, how the loan amount compares to the local conforming limit, and how your income is documented.
Santa Clara County is a high-cost area, so conforming loan limits here are much higher than the national baseline. That means many Bay Area buyers who assume they need a jumbo loan actually qualify for a conventional one with better pricing. Rosalio checks this on day one.
Conventional loans
Backed by Fannie Mae and Freddie Mac. Down payments from 3% for first-time buyers and 5% for others, with mortgage insurance that cancels once you reach 20% equity. Best pricing goes to buyers with stronger credit and larger down payments. Conventional is the default for most W-2 and self-employed buyers who document income with tax returns.
Who it fits
Buyers with credit in the mid 600s and up, loan amounts within the county conforming limit, and a down payment of at least 3% to 5%. Also the usual landing spot for FHA borrowers who refinance later to drop mortgage insurance.
FHA loans
Insured by the Federal Housing Administration. 3.5% down, flexible on credit and debt-to-income, and the whole down payment can be gifted. FHA loan limits in Santa Clara County are high enough to cover many condos and townhomes. The cost is an upfront mortgage insurance premium plus a monthly premium that stays for the life of most FHA loans.
Who it fits
First-time buyers with limited savings, buyers rebuilding credit, and households with higher debt ratios. Rosalio often pairs FHA with a plan to refinance into conventional once equity grows. See the first-time buyer page for how that plays out.
VA loans
For eligible veterans, active duty service members and some surviving spouses. Zero down payment, no monthly mortgage insurance, and competitive rates. There is a one-time funding fee, waived for many veterans with a service-connected disability. VA has no official loan limit for borrowers with full entitlement, which matters a great deal at Bay Area prices.
Who it fits
Anyone eligible. If you served, this is almost always the first program to look at, and Rosalio will confirm your Certificate of Eligibility early.
Jumbo loans
Any loan above the county conforming limit. Jumbo guidelines are set by the individual investor, so down payment, reserves and credit requirements vary more than with conforming loans. Many jumbo programs want 10% to 20% down and several months of reserves. Rosalio also uses piggyback structures (a conforming first mortgage plus a second) when that produces a lower blended rate.
Who it fits
Buyers of single-family homes in most San Jose neighborhoods, move-up buyers, and tech professionals with RSU income that needs careful documentation.
Other options Rosalio works with
- Bank statement and alternative documentation loans for self-employed buyers whose tax returns understate real income.
- 2 to 4 unit purchases where rental income from the other units helps you qualify.
- Investment property loans, including DSCR-style programs that qualify on the property's rent.
- HELOCs and second mortgages to tap equity without touching a low first-mortgage rate. Compare with a cash-out refinance.
- Renovation and ADU financing for buyers planning to add a unit or remodel after closing.
Quick comparison
| Program | Min. down | Mortgage insurance | Typical fit |
|---|---|---|---|
| Conventional | 3% to 5% | Cancels at 20% equity | Most buyers with mid-600s+ credit |
| FHA | 3.5% | Upfront + monthly, usually permanent | First-time buyers, flexible credit |
| VA | 0% | None (one-time funding fee) | Eligible veterans and service members |
| Jumbo | 10% to 20% | Varies by investor | Loans above the county limit |
Program guidelines change. Treat this page as orientation, then ask Rosalio which program your file qualifies for today. If you are buying, start on the purchase loans page.
Questions people ask about loan programs
What is the conforming loan limit in Santa Clara County?
Santa Clara County is a high-cost area, so its conforming limit is set at the national high-cost ceiling, which is well above the baseline limit most of the country uses. The exact figure is updated every year by FHFA. Rosalio will confirm the current number for your purchase before deciding between conventional and jumbo.
Is FHA or conventional better for me?
If your credit is strong and you can put 5% or more down, conventional usually costs less over time because the mortgage insurance cancels. If your credit is rebuilding or your debt ratio is high, FHA is often the one that gets approved. Rosalio runs both side by side.
Do VA loans have a maximum in the Bay Area?
Veterans with full entitlement have no VA loan limit, which makes VA one of the strongest programs available at Bay Area prices. Veterans with partial entitlement may have a limit based on the county conforming limit.
Can I avoid a jumbo loan with a piggyback?
Often. A conforming first mortgage plus a second mortgage can keep the first loan under the county limit and lower the blended rate. Whether it beats a straight jumbo depends on current pricing, which Rosalio compares for you.
I am self-employed and my tax returns show low income. What are my options?
Bank statement programs qualify you on deposits rather than taxable income. They carry somewhat higher rates and down payment requirements, but they are a real path for business owners. Rosalio reviews which documentation route produces the better loan.
Can I use rental income from a duplex to qualify?
Yes. On 2 to 4 unit properties, a portion of the projected rent from the other units can be added to your qualifying income, on FHA, VA and conventional loans.
Related: Purchase Loans, Refinance, First-Time Homebuyers, or go back to the home page. Have a question that is not here? Send it to Rosalio.