Most South Bay homes are bought with one of four kinds of loan. Which one fits depends on the price, your down payment and your situation. A lender sets the details; this is the map.
Conventional (conforming) loans
A loan up to the conforming loan limit, which the Federal Housing Finance Agency sets each year. Santa Clara County is a high-cost area, so its limit is higher than most of the country. With less than 20% down, conventional loans usually need private mortgage insurance until enough equity builds up.
Jumbo loans
A loan above the conforming limit, common at South Bay prices. Lenders set their own rules, and usually ask for a larger down payment, strong credit and cash reserves after closing.
FHA loans
Insured by the Federal Housing Administration, with a low minimum down payment and more flexible credit rules. FHA has its own county loan limits and mortgage insurance. Some condo complexes must be FHA-approved for an FHA buyer to purchase there.
VA loans
For eligible veterans, service members and some surviving spouses. VA loans can need no down payment and no monthly mortgage insurance; there is a one-time funding fee unless you are exempt. Check eligibility with the Department of Veterans Affairs.
Fixed or adjustable
A fixed rate stays the same for the life of the loan. An adjustable-rate mortgage (ARM) is fixed for a first period, often 5, 7 or 10 years, then adjusts. Ask how high the rate and payment could go before choosing one.
Common questions
What is the conforming loan limit in Santa Clara County?
Can I buy a condo with an FHA loan?
Do I need 20% down?
Official sources
- Federal Housing Finance Agency, conforming loan limits
- HUD, FHA mortgage limits
- U.S. Department of Veterans Affairs, VA home loans
General information, reviewed November 2026. Rules and rates change; it is not legal, tax or lending advice. Check with the official source or a professional before you rely on it.