San Jose FHA Loans

SAN JOSE-SUNNYVALE-SANTA CLARA, CA

FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

For additional requirements as defined by the FHA, click here.

San Jose's 83 lenders originated 1,022 FHA loans during 2021. The total origination value was $594,930,000, with an average FHA loan value of $582,123.

San Jose FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in San Jose averaged 4.71% for the week of 2022-08-05, compared to the national average (all FHA variants) of 5.305% for the same period.

The average rate for the prior week (2022-07-29) was 5.05% and one month ago for the week of 2022-07-01, the average rate was 5.04%.

The average rate one year ago was 2.85%.

For refis of the same type during the week of 2022-08-05, the average rate was 4.97%.

Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

San Jose FHA Loan Lenders by Rates & Fees

The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the San Jose level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 64 2.60% $12,027
UNITED WHOLESALE MORTGAGE, LLC 49 2.75% $16,441
FREEDOM MORTGAGE CORPORATION 47 2.63% $11,351
LOANDEPOT.COM, LLC 44 2.97% $16,509
CALIBER HOME LOANS, INC. 37 2.71% $14,052
PENNYMAC LOAN SERVICES, LLC 31 2.92% $11,925
MASON MCDUFFIE MORTGAGE CORPORATION 30 2.87% $17,599
GUILD MORTGAGE COMPANY 22 2.85% $16,137
LAKEVIEW LOAN SERVICING, LLC 21 2.71% $10,197
AMERICAN PACIFIC MORTGAGE CORPORATION 21 3.01% $16,765
HOME POINT FINANCIAL CORPORATION 17 2.84% $17,535
STEARNS LENDING, LLC 15 2.98% $21,291
Mr. Cooper ( Nationstar Mortgage ) 15 3.08% $9,442
CMG MORTGAGE, INC. 14 3.02% $20,679
CROSSCOUNTRY MORTGAGE, LLC 13 2.89% $18,429
SUMMIT FUNDING, INC. 13 2.96% $17,217
Lakeview Community Capital, LLC 12 2.73% $10,374
HOMEBRIDGE FINANCIAL SERVICES, INC. 11 2.81% $15,294
Carrington Mortgage Services, LLC 9 3.24% $19,440
FINANCE OF AMERICA MORTGAGE LLC 9 2.82% $15,549
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 9 2.98% $18,133
PLANET HOME LENDING, LLC 8 2.77% $14,223
Paramount Residential Mortgage Group, Inc. 8 2.78% $14,288
NEWREZ LLC 8 2.67% $12,731
NATIONS DIRECT MORTGAGE, LLC 8 2.88% $21,391
VILLAGE CAPITAL & INVESTMENT LLC 7 2.41% $6,025
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 7 2.84% $19,260
AMERICAN FINANCIAL NETWORK, INC. 6 2.75% $26,458
GUARANTEED RATE AFFINITY, LLC 6 2.83% $18,626
ACADEMY MORTGAGE CORPORATION 5 3.10% $17,477
BROKER SOLUTIONS, INC. 5 2.78% $11,871
PREMIER MORTGAGE RESOURCES, L.L.C. 5 3.03% $23,443
GUARANTEED RATE, INC. 4 2.91% $15,818
LAND HOME FINANCIAL SERVICES, INC. 4 3.06% $15,747
AmeriHome Mortgage Company, LLC 4 2.72% $12,398
Prosperity Home Mortgage, LLC 4 2.84% $14,142
Commerce Home Mortgage, Inc. 4 3.56% $18,894
INSPIRE HOME LOANS INC. 4 2.94% $20,005
OCMBC, INC. 4 3.06% $18,334
Bank of America 3 3.13% $16,641
MOVEMENT MORTGAGE, LLC 3 2.79% $5,785
MOUNTAIN WEST FINANCIAL, INC. 3 3.25% $26,212
MUTUAL OF OMAHA MORTGAGE, INC. 3 2.50% $16,828
OPEN MORTGAGE, LLC 3 2.63% $14,943
Flagstar Bank, FSB 3 3.38% $14,864
Equity Prime Mortgage LLC 3 3.50% $22,100
ENVOY MORTGAGE, LTD 3 3.21% $11,858
SUN WEST MORTGAGE COMPANY, INC. 3 2.83% $17,937
KBHS HOME LOANS, LLC 2 3.06% $20,584
HOME APPROVALS DIRECT, INC. 2 3.75% $28,124
First Guaranty Mortgage Corporation 2 2.63% $12,221
InterContinental Capital Group, Inc 2 2.50% $11,313
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 2 3.75% $22,073
PANORAMA MORTGAGE GROUP, LLC 2 3.50% $22,018
CELEBRITY HOME LOANS, LLC 2 2.88% $12,401
Platinum Home Mortgage Corporation 2 3.06% $27,191
PREMIER LENDING, INC. 2 2.94% $16,099
ROUNDPOINT MORTGAGE SERVICING CORPORATION 2 3.13% $17,730
S1L, Inc. 2 3.00% $19,854
SNAPFI, INC. 2 2.69% $12,056
CALCULATED RISK ANALYTICS LLC 1 3.38% $29,037
BECKAM FUNDING CORP. 1 3.13% $31,557
Low VA Rates, LLC 1 2.25% $11,254
PLAZA HOME MORTGAGE, INC. 1 3.13% $16,158
TOP FLITE FINANCIAL, INC. 1 2.50% $32,178
WESTERN EXPRESS LENDING 1 2.50% $13,748
CHURCHILL MORTGAGE CORPORATION 1 2.38% $18,418
Bank of the West 1 3.25% $10,605
RESIDENTIAL BANCORP. 1 3.63% $27,854
EMBRACE HOME LOANS, INC. 1 2.75% $16,167
Amerifirst Financial, Inc. 1 3.25% $37,207
SCENIC OAKS FUNDING, INC. 1 2.75% $14,743
Sierra Pacific Mortgage Company, Inc. 1 3.25% $14,287
EVERETT FINANCIAL, INC. 1 2.88% $17,114
SOUTHWEST STAGE FUNDING, LLC 1 2.75% $11,916
SOVEREIGN LENDING GROUP INCORPORATED 1 2.88% $11,938
NFM, INC. 1 3.13% $17,766
OCEANSIDE MORTGAGE COMPANY 1 2.49% $9,757
Century Mortgage Company DBA Century Lending Company 1 2.63% $10,380
Chickasaw Community Bank 1 2.88% $24,218
PACIFIC RESIDENTIAL MORTGAGE, LLC 1 2.88% $21,137
MICHIGAN MUTUAL, INC. 1 2.88% $19,307
AMERISAVE MORTGAGE CORPORATION 1 2.50% $23,239

The top San Jose FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 64 FHA loans originated. Their average total fees are $12,027, which is $4,414 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

The lowest fee San Jose FHA lenders (with over 10 loans originated) are Mr. Cooper ( Nationstar Mortgage ) ($9,442), LAKEVIEW LOAN SERVICING, LLC ($10,197), Lakeview Community Capital, LLC ($10,374), FREEDOM MORTGAGE CORPORATION ($11,351) and PENNYMAC LOAN SERVICES, LLC ($11,925).

The lowest rate San Jose FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.60%), FREEDOM MORTGAGE CORPORATION (2.63%), LAKEVIEW LOAN SERVICING, LLC (2.71%), CALIBER HOME LOANS, INC. (2.71%) and Lakeview Community Capital, LLC (2.73%).

San Jose FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
SAN JOSE-SUNNYVALE-SANTA CLARA, CA SAN BENITO 2022 $970,800 $1,243,050 $1,502,475 $1,867,275
SAN JOSE-SUNNYVALE-SANTA CLARA, CA SANTA CLARA 2022 $970,800 $1,243,050 $1,502,475 $1,867,275

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - San Jose (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
2018-01-01 $1,100,000 (24.0%) $1,815,454 (27.2%) 4.05 576
2018-02-01 $1,199,444 (25.8%) $1,782,374 (19.7%) 4.33 678
2018-03-01 $1,250,000 (30.9%) $1,824,412 (22.4%) 4.33 801
2018-04-01 $1,247,000 (26.2%) $1,826,697 (22.8%) 4.18 998
2018-05-01 $1,279,000 (28.1%) $1,789,201 (9.7%) 4.26 1,210
2018-06-01 $1,248,000 (24.9%) $1,762,730 (6.9%) 4.16 1,479
2018-07-01 $1,199,000 (15.3%) $1,699,481 (1.8%) 4.00 1,760
2018-08-01 $1,165,000 (13.7%) $1,632,626 (-0.4%) 3.89 1,876
2018-09-01 $1,128,800 (3.1%) $1,608,721 (-12.0%) 3.78 2,100
2018-10-01 $1,097,000 (-1.3%) $1,564,216 (-14.4%) 3.67 2,190
2018-11-01 $1,083,000 (-5.8%) $1,516,391 (-21.5%) 3.63 2,109
2018-12-01 $999,950 (-12.3%) $1,487,718 (-23.4%) 3.42 1,492
2019-01-01 $999,000 (-9.2%) $1,490,069 (-17.9%) 3.44 1,295
2019-02-01 $1,075,000 (-10.4%) $1,599,339 (-10.3%) 3.60 1,465
2019-03-01 $1,099,365 (-12.1%) $1,618,391 (-11.3%) 3.58 1,675
2019-04-01 $1,114,500 (-10.6%) $1,623,187 (-11.1%) 3.51 1,860
2019-05-01 $1,178,000 (-7.9%) $1,648,951 (-7.8%) 3.63 2,209
2019-06-01 $1,168,000 (-6.4%) $1,659,910 (-5.8%) 3.60 2,434
2019-07-01 $1,130,000 (-5.8%) $1,652,717 (-2.8%) 3.51 2,367
2019-08-01 $1,120,571 (-3.8%) $1,669,214 (2.2%) 3.53 2,204
2019-09-01 $1,140,571 (1.0%) $1,680,869 (4.5%) 3.62 2,115
2019-10-01 $1,109,000 (1.1%) $1,733,833 (10.8%) 3.54 2,065
2019-11-01 $1,099,000 (1.5%) $1,817,598 (19.9%) 3.55 1,635
2019-12-01 $1,049,629 (5.0%) $1,834,752 (23.3%) 3.50 994
2020-01-01 $1,081,944 (8.3%) $1,816,358 (21.9%) 3.61 803
2020-02-01 $1,170,000 (8.8%) $1,938,495 (21.2%) 3.78 931
2020-03-01 $1,245,000 (13.3%) $1,923,234 (18.8%) 3.89 1,133
2020-04-01 $1,198,500 (7.5%) $1,784,793 (10.0%) 3.73 1,354
2020-05-01 $1,199,000 (1.8%) $1,803,200 (9.4%) 3.63 1,643
2020-06-01 $1,229,500 (5.3%) $1,801,572 (8.5%) 3.59 1,646
2020-07-01 $1,217,500 (7.7%) $1,771,534 (7.2%) 3.49 1,663
2020-08-01 $1,199,000 (7.0%) $1,755,038 (5.1%) 3.43 1,678
2020-09-01 $1,200,000 (5.2%) $1,776,475 (5.7%) 3.43 1,677
2020-10-01 $1,199,000 (8.1%) $1,828,795 (5.5%) 3.43 1,683
2020-11-01 $1,213,944 (10.5%) $1,900,604 (4.6%) 3.48 1,561
2020-12-01 $1,187,500 (13.1%) $1,860,389 (1.4%) 3.48 1,152
2021-01-01 $1,195,000 (10.5%) $1,824,017 (0.4%) 3.52 955
2021-02-01 $1,199,500 (2.5%) $1,836,826 (-5.2%) 3.45 1,023
2021-03-01 $1,233,000 (-1.0%) $1,839,189 (-4.4%) 3.46 1,142
2021-04-01 $1,243,440 (3.8%) $1,857,120 (4.1%) 3.34 1,207
2021-05-01 $1,298,000 (8.3%) $1,917,178 (6.3%) 3.42 1,193
2021-06-01 $1,298,500 (5.6%) $1,926,039 (6.9%) 3.37 1,282
2021-07-01 $1,250,500 (2.7%) $1,863,704 (5.2%) 3.25 1,347
2021-08-01 $1,250,000 (4.3%) $1,838,066 (4.7%) 3.29 1,331
2021-09-01 $1,250,900 (4.2%) $1,860,657 (4.7%) 3.29 1,246
2021-10-01 $1,255,561 (4.7%) $1,916,896 (4.8%) 3.30 1,142
2021-11-01 $1,244,944 (2.6%) $1,916,054 (0.8%) 3.28 782
2021-12-01 $1,239,419 (4.4%) $1,869,929 (0.5%) 3.31 511
2022-01-01 $1,298,000 (8.6%) $1,915,150 (5.0%) 3.46 460
2022-02-01 $1,358,444 (13.3%) $1,898,101 (3.3%) 3.46 614
2022-03-01 $1,399,450 (13.5%) $1,921,075 (4.5%) 3.46 747
2022-04-01 $1,439,000 (15.7%) $1,894,830 (2.0%) 3.39 866
2022-05-01 $1,494,000 (15.1%) $1,907,977 (-0.5%) 3.34 1,466
2022-06-01 $1,489,444 (14.7%) $1,942,541 (0.9%) 3.31 1,712
San Jose's median listing price for 2022-06-01 was $1,489,444, a difference of $190,944 (14.7%) versus the prior year and $-4,556 versus the prior month.

San Jose's median listing price comes in at 331% of the national average.

San Jose's average listing price for 2022-06-01 was $1,942,541, a difference of $16,502 (0.9%) versus the prior year and $34,564 versus the prior month.

For the 2022-06-01 period, San Jose had 1,712 MLS listings, a difference of 246 listings (17%) versus the prior month and 430 listings (34%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - San Jose (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 26 days 1,888 sqft
2018-02-01 18 days 1,893 sqft
2018-03-01 16 days 1,817 sqft
2018-04-01 18 days 1,771 sqft
2018-05-01 17 days 1,779 sqft
2018-06-01 22 days 1,732 sqft
2018-07-01 26 days 1,691 sqft
2018-08-01 29 days 1,656 sqft
2018-09-01 30 days 1,653 sqft
2018-10-01 31 days 1,637 sqft
2018-11-01 38 days 1,620 sqft
2018-12-01 51 days 1,617 sqft
2019-01-01 53 days 1,615 sqft
2019-02-01 26 days 1,651 sqft
2019-03-01 28 days 1,679 sqft
2019-04-01 28 days 1,699 sqft
2019-05-01 25 days 1,745 sqft
2019-06-01 30 days 1,735 sqft
2019-07-01 38 days 1,716 sqft
2019-08-01 40 days 1,702 sqft
2019-09-01 42 days 1,688 sqft
2019-10-01 38 days 1,724 sqft
2019-11-01 45 days 1,764 sqft
2019-12-01 58 days 1,793 sqft
2020-01-01 59 days 1,741 sqft
2020-02-01 23 days 1,799 sqft
2020-03-01 23 days 1,790 sqft
2020-04-01 35 days 1,754 sqft
2020-05-01 37 days 1,789 sqft
2020-06-01 35 days 1,752 sqft
2020-07-01 34 days 1,694 sqft
2020-08-01 31 days 1,653 sqft
2020-09-01 28 days 1,619 sqft
2020-10-01 25 days 1,589 sqft
2020-11-01 32 days 1,545 sqft
2020-12-01 41 days 1,505 sqft
2021-01-01 42 days 1,528 sqft
2021-02-01 28 days 1,559 sqft
2021-03-01 26 days 1,587 sqft
2021-04-01 28 days 1,604 sqft
2021-05-01 28 days 1,652 sqft
2021-06-01 24 days 1,648 sqft
2021-07-01 28 days 1,623 sqft
2021-08-01 30 days 1,593 sqft
2021-09-01 31 days 1,616 sqft
2021-10-01 33 days 1,610 sqft
2021-11-01 36 days 1,596 sqft
2021-12-01 39 days 1,548 sqft
2022-01-01 35 days 1,576 sqft
2022-02-01 16 days 1,609 sqft
2022-03-01 17 days 1,630 sqft
2022-04-01 19 days 1,664 sqft
2022-05-01 17 days 1,665 sqft
2022-06-01 23 days 1,669 sqft
San Jose's median listing age (time on market) for 2022-06-01 was 23 days. This is -2% shorter than the same period one year ago.

San Jose's median square footage for active listings during the 2022-06-01 period was 1,669 sqft. One year prior, the average listing was 1,648 sqft.

FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).