Question 1

What is the conforming loan limit for Monterey County?

Accepted Answer

Monterey County follows the standard FHFA conforming limit set annually. Most King City purchases fall well under that cap.

Question 2

Can I use a conforming loan with seasonal farm income?

Accepted Answer

Yes, but you need a two-year history of that income. Lenders average it — so gaps or low years pull your qualifying income down.

Question 3

How much do I need to put down in King City?

Accepted Answer

First-time buyers can go as low as 3% down. Repeat buyers typically need 5% minimum under conforming guidelines.

Question 4

Do conforming loans require mortgage insurance?

Accepted Answer

Only if you put less than 20% down. Unlike FHA, you can cancel PMI once your equity hits 20%.

Question 5

How does my credit score affect my rate in King City?

Accepted Answer

Significantly. Going from 680 to 740 can drop your rate noticeably. Rates vary by borrower profile and market conditions.

Question 6

Is a conforming loan better than an FHA loan here?

Accepted Answer

For buyers with 620+ credit and 5%+ down, conforming usually wins. FHA costs more long-term due to permanent mortgage insurance.

Conforming Loans in King City, CA