Question 1

What's the 2026 conforming loan limit in Merced County?

Accepted Answer

The 2026 conforming limit is $832,750. Loans above that amount require jumbo financing, which typically demands a larger down payment and higher credit score.

Question 2

Can I get an FHA loan in Gustine?

Accepted Answer

Yes. FHA loans are available in Merced County with a 2026 limit of $541,287. The minimum down payment is 3.5% with a 580+ FICO score.

Question 3

What down payment eliminates PMI on a conventional loan?

Accepted Answer

20% down (80% LTV) eliminates PMI entirely. Below 20% down, PMI applies. PMI cancels automatically at 78% LTV and can be requested at 80% LTV.

Question 4

Is Merced County an FHA high-cost area?

Accepted Answer

No. Merced County is not designated an FHA high-cost area. Standard FHA limits and rules apply here.

Question 5

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require 620+ FICO for conventional loans. Stronger scores (740+) typically qualify for better rates and terms.

Question 6

How does the new Downtown Merced cultural district affect Gustine?

Accepted Answer

Downtown Merced's cultural district status signals regional investment and business growth. This can support property values and buyer interest in surrounding areas like Gustine.

Question 7

What does the county median income tell me about affordability?

Accepted Answer

Merced County's median household income is $65,044. This benchmark helps lenders assess debt-to-income ratios and your qualifying ability.

Question 8

Can I get a VA loan with zero down in Gustine?

Accepted Answer

Yes. VA loans allow zero-down financing for eligible veterans, active duty, and surviving spouses with a Certificate of Eligibility. No PMI applies.

Question 9

What's the VA funding fee on a zero-down loan?

Accepted Answer

The VA funding fee is 2.15% of the loan amount on first-time use with zero down. Veterans with a 10%+ disability rating are exempt.

Question 10

Is Merced County a VA high-cost area?

Accepted Answer

No. Merced County is not designated a VA high-cost area. Standard VA loan limits and rules apply.

Question 11

What does FHA MIP cost and how long does it last?

Accepted Answer

FHA upfront MIP is 1.75% of the loan amount. If you put down less than 10%, MIP runs for the life of the loan. With 10%+ down, MIP cancels after 11 years.

Question 12

How much house can I afford on the county median income?

Accepted Answer

On a $65,044 household income, most lenders cap your housing payment at 28% of gross income. That's roughly $1,518 monthly for housing costs.

Question 13

What's the difference between conforming and jumbo loans?

Accepted Answer

Conforming loans stay at or below $832,750 (2026 limit) and follow standard guidelines. Jumbo loans exceed that limit and typically require 20%+ down and 700+ FICO.

Question 14

Can I use a gift for my down payment?

Accepted Answer

Yes. Most lenders accept gift funds from family members. You'll need a gift letter stating the money is a gift, not a loan.

Question 15

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

Accepted Answer

Typical closing timelines run 30–45 days from application to funding. Merced County's rural setting may add a few days for appraisals.

Gustine mortgage questions answered