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Gonzales sits in the Salinas Valley — agricultural roots, working families, and a housing stock that fits conventional loan limits well.
HousingWire flagged the 30-year fixed hitting 6.57% with applications down over 10%. That rate sensitivity matters if you're timing a purchase here. Rates vary by borrower profile and market conditions.
6.57% (Apr 2026)
30-Year Fixed (Market)
620
Min Credit Score
3%
Min Down Payment
20% equity
PMI Removed At
45%
Max DTI (Typical)
Conventional Loans in Gonzales
You need a 620 minimum credit score for most conventional loans. A 740+ score gets you the best rate tiers.
Down payment starts at 3% for first-time buyers. Put down 20% and you skip private mortgage insurance entirely.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Gonzales.
Gonzales sits in the Salinas Valley — agricultural roots, working families, and a housing stock that fits conventional loan limits well.
HousingWire flagged the 30-year fixed hitting 6.57% with applications down over 10%. That rate sensitivity matters if you're timing a purchase here. Rates vary by borrower profile and market conditions.
You need a 620 minimum credit score for most conventional loans. A 740+ score gets you the best rate tiers.
We shop conventional loans across 200+ wholesale lenders. Retail banks quote one rate. We find the best among dozens.
Not every lender prices Monterey County the same. Rural designation and local appraisal conditions affect what programs are available.
Gonzales borrowers sometimes get flagged for rural appraisal conditions. Pick a lender familiar with Salinas Valley comps.
ARM demand is rising as buyers chase lower initial rates. On a Gonzales purchase, run both fixed and ARM numbers before deciding.
FHA loans allow lower credit scores but add mortgage insurance for the loan's life. Conventional PMI drops off once you hit 20% equity.
Jumbo loans kick in above conforming limits. Most Gonzales homes fall under those limits, so conventional is the cleaner path.
Gonzales is a smaller Monterey County city. Appraisers pull comps from nearby Soledad and King City — that affects valuations.
Agriculture drives the local economy. Seasonal income borrowers need to document two full years of earnings to qualify conventionally.
Most lenders require a 620 minimum. A 740+ score gets you meaningfully better rates.
Yes, for first-time buyers. Expect PMI until you reach 20% equity in the home.
Conventional PMI falls off at 20% equity. FHA mortgage insurance typically stays for the loan's life.
It can. You'll need two years of documented seasonal earnings — lenders average them for qualifying income.
Yes. We broker loans across Monterey County and know how local appraisal conditions affect approvals here.