Question 1

What's the conforming loan limit in Monterey County for 2026?

Accepted Answer

The 2026 conforming limit is $994,750. Loans above that are jumbo and carry different terms and rates.

Question 2

Is Monterey County an FHA high-cost area?

Accepted Answer

Yes. FHA loans in Monterey County reach $994,750 in 2026. The high-cost designation makes FHA competitive here.

Question 3

Are VA loans capped at the same limit as FHA in this county?

Accepted Answer

Yes. VA loans max out at $994,750 in 2026. Zero-down VA financing is available up to that amount for eligible veterans.

Question 4

How much do I need to put down on a conventional loan?

Accepted Answer

Conventional loans typically require 5% to 20% down. At 20% down, you skip PMI entirely.

Question 5

What credit score do I need to qualify for a mortgage?

Accepted Answer

Most conventional lenders require 620+ FICO. FHA accepts 580+ FICO with 3.5% down.

Question 6

Does the Monterey Jazz Festival affect home prices in Gonzales?

Accepted Answer

The festival brings tourism to coastal Monterey County. Gonzales, inland, tends to be more stable and affordable than waterfront areas.

Question 7

Can I get an FHA loan with just 3.5% down?

Accepted Answer

Yes. FHA requires 3.5% down minimum with 580+ FICO. You'll pay upfront mortgage insurance of 1.75% of the loan amount.

Question 8

What's the income requirement to qualify for a mortgage?

Accepted Answer

Lenders typically cap debt-to-income at 43% to 50%. With Monterey County's median income at $94,486, most full-time earners can qualify.

Question 9

Do VA loans require a down payment?

Accepted Answer

No. VA loans allow zero down for eligible borrowers. You'll pay a funding fee instead of PMI — 2.15% at zero down on first use.

Question 10

When does PMI drop off a conventional loan?

Accepted Answer

PMI cancels automatically at 78% LTV. You can request removal at 80% LTV once you've built equity.

Question 11

What's the jumbo loan cutoff in Monterey County?

Accepted Answer

Any loan above $994,750 is jumbo in 2026. Jumbo loans typically require 20% down and 700+ FICO.

Question 12

How long does it take to close a mortgage?

Accepted Answer

Most conventional loans close in 30 to 45 days. FHA and VA can take 45 to 60 days due to appraisal timelines.

Question 13

Are property taxes high in Monterey County?

Accepted Answer

Monterey County property taxes run roughly 0.76% of assessed value annually. Factor this into your monthly housing cost.

Gonzales mortgage FAQ — questions from Monterey County buyers