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King City sits in Monterey County's agricultural heartland, where the Reservoir Farms ag-tech hub just opened in nearby Salinas with 12 specialty crop robotics startups.
The conventional market in King City favors buyers with solid credit and cash reserves. At 80% LTV, you skip PMI entirely — no insurance premium eating into your payment. That's the conventional advantage over FHA in this price range.
5.875%
Interest Rate
$4,437
Monthly Payment (P&I)
680+
FICO Required
$187,500
Down Payment (20%)
None
PMI at 80% LTV
21–30 days
Closing Timeline
Conventional Loans in King City
Conventional loans in King City require a 620 FICO minimum, but lenders prefer 680+. At 740 FICO, you qualify for par rates. Down payment ranges from 5% to 25%; at 20% down ($187,500 on a $937,500 purchase), PMI cancels entirely.
Monterey County's median household income of $94,486 supports homes in the $700K–$850K range comfortably. Debt-to-income limits run 43–50% depending on reserves and credit.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in King City.
King City sits in Monterey County's agricultural heartland, where the Reservoir Farms ag-tech hub just opened in nearby Salinas with 12 specialty crop robotics startups.
The conventional market in King City favors buyers with solid credit and cash reserves. At 80% LTV, you skip PMI entirely — no insurance premium eating into your payment. That's the conventional advantage over FHA in this price range.
Conventional loans in King City require a 620 FICO minimum, but lenders prefer 680+. At 740 FICO, you qualify for par rates. Down payment ranges from 5% to 25%; at 20% down ($187,500 on a $937,500 purchase), PMI cancels entirely.
California's conventional market splits between retail banks, credit unions, and mortgage brokers. Retail lenders (Bank of America, Wells Fargo, Chase) move slowly but offer branch support.
Underwriting timelines depend on your file's cleanliness. Clean credit, W-2 income, and 20% down close in three weeks. Self-employed borrowers, recent job changes, or gift funds add 5–10 days. Appraisals in King City run $600–$800 and take 7–10 days.
Conventional 30-year fixed makes sense in King City when you have 15%+ down and a 680+ FICO. The math works: at 80% LTV, you skip PMI and lock a 5.875% rate. That's the sweet spot.
Where conventional stumbles is on tight credit or minimal reserves. If you're 620–660 FICO with 5% down, FHA's lower bar and faster approval win.
FHA loans in King City start with 3.5% down and lower rates than conventional, but mortgage insurance never cancels unless you refinance. Over 30 years, that's tens of thousands in extra cost.
The trade: FHA gets you in with less cash upfront and tighter credit (580 FICO works). Conventional demands more down and better credit but rewards you with zero insurance forever.
Monterey County's Measure AA just approved $9.5 million in road, park, and public-safety projects. That infrastructure spending matters for King City buyers — better roads and safer neighborhoods support long-term home values.
Navigator Charter Schools is launching three TK-12 campuses across Monterey County starting 2026–27, including one in Salinas. If schools matter to your family, that's new capacity and choice coming.
At 5.875% on a $750,000 loan with 20% down ($187,500), principal and interest run $4,437 monthly. Add property tax, insurance, and HOA (if any) on top. This assumes a 740 FICO, 30-year fixed, primary residence, locked April 9, 2026.
Yes. 20% down (80% LTV) is the threshold where PMI cancels entirely. Below 20%, PMI runs until you hit 78% LTV automatically or request cancellation at 80%. At 15% down, you'd carry insurance for years unless you refinance.
Yes. Conventional loans accept 5% down, but PMI kicks in. At 10% down, PMI is lower than at 5%, and it cancels sooner. The trade: lower upfront cash but higher monthly payment. Run the numbers with your broker.
620 FICO is the legal minimum, but lenders prefer 680+. At 680–719, you may pay 0.25–0.5% more in rate. At 740+, you get par pricing. King City's agricultural market sometimes sees seasonal income — document it carefully.
Typically 21–30 days if your file is clean (W-2 income, stable credit, 20% down). Appraisals take 7–10 days. Self-employed borrowers or gift funds add 5–10 days. Lock your rate early; 30-day locks are standard.