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King City sits in southern Monterey County — agricultural country where home prices tend to stay well below coastal California norms.
That works in your favor with a conforming loan. Most properties here fall comfortably under the 2026 Fannie Mae and Freddie Mac loan limits.
620
Min Credit Score
3% (first-time)
Min Down Payment
45%
Max DTI Ratio
6.57% (market avg)
30-Yr Fixed (as of Apr 2026)
2 years
Income History Needed
Conforming Loans in King City
Most lenders want a 620 minimum credit score for conforming loans. Better scores unlock better rates — 740+ puts you in the top pricing tier.
You'll need a debt-to-income ratio at or below 45%. Down payment starts at 3% for first-time buyers and 5% for repeat buyers.
Local decision guide
Use this guide to connect conforming loans eligibility, lender expectations, and local market factors before comparing payment options in King City.
King City sits in southern Monterey County — agricultural country where home prices tend to stay well below coastal California norms.
That works in your favor with a conforming loan. Most properties here fall comfortably under the 2026 Fannie Mae and Freddie Mac loan limits.
Most lenders want a 620 minimum credit score for conforming loans. Better scores unlock better rates — 740+ puts you in the top pricing tier.
Conforming loans are the most competitive product on the market. Nearly every lender offers them — which means rate shopping actually pays off.
HousingWire flagged that the 30-year fixed hit 6.57% recently, with applications dropping 10.4% week-over-week. For King City buyers, lower competition can mean more room to negotiate.
King City is mostly a purchase market. Refinance activity has slowed sharply as rates climbed, so lenders are hungry for purchase business.
We see borrowers here qualify cleanly on conforming guidelines — steady ag-industry income, manageable debt loads, and properties that appraise without drama.
FHA loans drop the credit floor to 580 but add mortgage insurance for the loan's life. Conforming loans let you cancel PMI once you hit 20% equity.
Jumbo loans kick in above the conforming limit. For most King City purchases, you won't need one — and that's a good thing. Jumbo underwriting is stricter and rates run higher.
Monterey County has one conforming loan limit that applies county-wide. King City properties almost always fall under that cap.
Seasonal ag income can complicate qualifying. Lenders want a two-year history. We know which wholesale lenders underwrite ag-adjacent income the most cleanly.
Monterey County follows the standard FHFA conforming limit set annually. Most King City purchases fall well under that cap.
Yes, but you need a two-year history of that income. Lenders average it — so gaps or low years pull your qualifying income down.
First-time buyers can go as low as 3% down. Repeat buyers typically need 5% minimum under conforming guidelines.
Only if you put less than 20% down. Unlike FHA, you can cancel PMI once your equity hits 20%.
Significantly. Going from 680 to 740 can drop your rate noticeably. Rates vary by borrower profile and market conditions.
For buyers with 620+ credit and 5%+ down, conforming usually wins. FHA costs more long-term due to permanent mortgage insurance.