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FHA Loans in Del Rey Oaks
What credit score do I need for an FHA loan in Del Rey Oaks?
You need a minimum 580 representative credit score for a primary residence. Higher scores qualify for better rates.
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Del Rey Oaks sits in Monterey County, where the median home price is $836,374. At 5.875% interest, a $750,000 FHA loan carries a $4,437 monthly payment for principal and interest.
The Sea Otter Classic draws 80,000+ attendees annually for cycling and outdoor recreation. That regional draw supports steady home values in this coastal market.
5.875%
Interest Rate
$4,437
Monthly P&I
580
Minimum Credit Score
3.5% minimum
Down Payment
$836,374
Median Home Price
17–21 days
Closing Timeline
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FHA requires a minimum 580 representative credit score for a primary residence. You'll also need a maximum 96.5 percent loan-to-value ratio, which means 3.5 percent down.
Your housing debt-to-income ratio cannot exceed 31 percent for a primary residence. Your total debt-to-income ratio cannot exceed 43 percent for a primary residence.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Del Rey Oaks.
Del Rey Oaks sits in Monterey County, where the median home price is $836,374. At 5.875% interest, a $750,000 FHA loan carries a $4,437 monthly payment for principal and interest.
The Sea Otter Classic draws 80,000+ attendees annually for cycling and outdoor recreation. That regional draw supports steady home values in this coastal market.
FHA requires a minimum 580 representative credit score for a primary residence. You'll also need a maximum 96.5 percent loan-to-value ratio, which means 3.5 percent down.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
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FHA loans are written by both retail banks and mortgage brokers. SRK CAPITAL shops the loan across its wholesale lender network to find the best rate and terms.
Underwriting focuses on credit history, income verification, and the property itself. FHA allows lower credit scores and smaller down payments than conventional financing.
04
FHA makes sense in Del Rey Oaks when you have solid income but limited down-payment savings. At $836,374 median price, the 3.5 percent down option opens the door for buyers who'd otherwise wait years.
The trade-off is mortgage insurance for the life of the loan when you put down less than 10 percent. At the $750,000 loan amount shown here, that insurance cost is real but often cheaper than renting while saving.
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Conventional loans typically require 5 to 20 percent down and a higher credit score. FHA's 3.5 percent down and 580 minimum credit score open the door for buyers conventional lenders turn away.
Conventional loans at 80 percent LTV or below carry no mortgage insurance at all. FHA's lifetime insurance below 10 percent down costs more over time, but the lower entry barrier often makes FHA faster.
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Monterey County's median household income is $94,486. The $4,437 monthly FHA payment on a $750,000 loan fits within that income range for stable buyers.
The Monterey Jazz Festival and Sea Otter Classic draw visitors year-round. That economic activity supports local employment and property values in Del Rey Oaks.
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FHA lending in Monterey County remains steady as buyers balance affordability with coastal market prices. The $836,374 median in Del Rey Oaks sits near the FHA limit of $994,750 for 2026.
Brokers and retail lenders both compete on FHA rates here. SRK CAPITAL shops the loan across its wholesale network to find the best pricing for your specific credit profile.
FAQ
You need a minimum 580 representative credit score for a primary residence. Higher scores qualify for better rates.
FHA allows as little as 3.5 percent down, which is a maximum 96.5 percent loan-to-value ratio. On a $777,202 purchase, that's $27,202 down.
At 5.875% interest as of August 29, 2026, principal and interest run $4,437 per month on a 30-year term. Rates vary by borrower profile and market conditions.
Yes — FHA mortgage insurance cancels after 11 years if you put down 10 percent or more. Below 10 percent down, it runs for the life of the loan.
Your housing debt-to-income ratio cannot exceed 31 percent for a primary residence. Your total debt-to-income ratio cannot exceed 43 percent for a primary residence.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
SRK CAPITAL in Monterey County
Our team of licensed mortgage brokers works Monterey County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
What working with us looks like
Licensed mortgage brokers
You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including Monterey County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
Side-by-side comparisons to help you choose the right mortgage program.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.