Question 1

What is the FHA loan limit for Monterey County?

Accepted Answer

FHA loan limits change annually. Check HUD's current limits for Monterey County before assuming FHA covers your target purchase price.

Question 2

Can I use an FHA loan for a condo in Carmel?

Accepted Answer

Only if the condo complex is on HUD's approved list. Many Carmel condo buildings are not FHA-approved.

Question 3

Does FHA work for vacation homes in Carmel By The Sea?

Accepted Answer

No. FHA is for primary residences only. You must intend to live in the home as your main address.

Question 4

How long does FHA mortgage insurance last?

Accepted Answer

On loans with less than 10% down, FHA mortgage insurance stays for the life of the loan. Refinancing to conventional later is the typical exit.

Question 5

Is FHA competitive against conventional loans in Carmel?

Accepted Answer

Usually not above 680 credit. Conventional loans often have lower total costs and are viewed more favorably by sellers in high-end markets.

Question 6

What property conditions does FHA require?

Accepted Answer

FHA appraisers flag safety, structural, and habitability issues. Older Carmel homes may require repairs before the loan can close.

FHA Loans in Carmel By The Sea — What You Need to Know