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FHA Loans in King City
King City offers FHA buyers more buying power than coastal Monterey County. Homes here typically cost 40-60% less than Carmel or Monterey.
Agricultural workers and service industry employees make up much of King City's workforce. FHA's 3.5% down requirement fits this income profile better than conventional 5-10% programs.
King City's market stays stable year-round without the seasonal tourism swings that hit coastal cities. FHA buyers aren't competing with investment property purchases like they would in Pebble Beach.
You need 580 credit for 3.5% down, or 500-579 credit with 10% down. Most King City first-time buyers hit that 580 mark after cleaning up collections.
FHA allows 43% debt-to-income, sometimes higher with strong compensating factors. A $4,000 monthly income supports roughly $275K in purchase price with typical debts.
Two years of W-2 employment works for most King City applicants. Agricultural workers with seasonal income need proper documentation showing year-round work pattern.
Not all lenders approve FHA loans in King City because it's rural Monterey County. The major banks often skip South County entirely for government loans.
We access 30+ FHA-approved lenders who actually close in King City. That matters when appraisals come in tight or you're buying a manufactured home on permanent foundation.
Some lenders cap FHA loans at $500K regardless of county limits. Others won't touch properties over 1 acre or with well water, which eliminates half of King City's inventory.
King City FHA deals get tripped up on appraisals more than credit. Homes with deferred maintenance fail FHA's property standards even when they're priced right.
Wells are common in King City and FHA requires water quality testing. Budget $400-600 for that test and factor two weeks into your timeline for results and potential treatment.
The FHA loan limit here is $766,550 for 2024, but most King City homes sell for $350K-550K. You're not hitting the ceiling like you would buying FHA in Carmel.
I see King City buyers choose FHA over conventional because 3.5% down beats 5% down, even though mortgage insurance costs more. The upfront cash savings matter more than monthly payment differences of $80-120.
VA loans beat FHA for eligible veterans because there's no funding fee on disability ratings. King City has significant veteran population from Fort Hunter Liggett proximity.
Conventional loans work better if you have 5% down and 680+ credit. You drop mortgage insurance at 78% loan-to-value instead of paying it for the loan's life with FHA.
USDA loans offer zero down in King City since it's USDA-eligible, but income limits around $103K disqualify many two-income households. FHA has no income ceiling.
King City properties with septic systems need FHA-compliant inspections. The system must serve the home adequately and pass visual inspection by the appraiser.
Manufactured homes built after June 1976 qualify for FHA if they're on permanent foundation with HUD certification label. King City has many manufactured homes that meet these requirements.
Agricultural zoning doesn't disqualify FHA financing as long as the home is residential. Properties with active farming operations sometimes trigger additional lender requirements around liability.
Commuters to Salinas or Paso Robles drive 30-45 minutes each way. Lenders don't care about commute distance but it affects your decision between King City affordability versus coastal job access.
3.5% down with 580+ credit score. A $400,000 home needs $14,000 down plus closing costs of roughly $8,000-12,000.
Yes, if it's post-1976 with HUD label and on permanent foundation. Not all lenders approve manufactured homes so choosing the right one matters.
Yes, but you need water quality testing that costs $400-600. Results take 1-2 weeks and water must meet FHA potability standards.
580 minimum for 3.5% down. Scores of 500-579 require 10% down but few lenders approve below 580 regardless of down payment.
Some lenders won't finance rural Monterey County at all. We work with lenders experienced in South County properties including septic, wells, and larger lots.
Yes, with two years of consistent employment history. Seasonal income needs documentation showing year-round work pattern or adequate reserves.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.