Question 1

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

Accepted Answer

The conforming limit is $994,750. Loans above that amount require jumbo financing. FHA and VA loans also top out at $994,750 in this county.

Question 2

Is Monterey County an FHA high-cost area?

Accepted Answer

Yes. Monterey County qualifies as an FHA high-cost area. This affects the maximum loan amount and MIP calculations for FHA borrowers.

Question 3

Is Monterey County a VA high-cost area?

Accepted Answer

Yes. Monterey County is designated a VA high-cost area. VA loan limits match the conforming ceiling at $994,750.

Question 4

What credit score do I need to buy in King City?

Accepted Answer

Most conventional lenders require 620+ FICO for conventional and 580+ for FHA. VA loans typically accept 580+. Stronger scores open access to better rates.

Question 5

How much down payment do I need for a conventional loan?

Accepted Answer

Conventional loans typically require 3% to 20% down. At 20% down, you skip PMI entirely. Below 20%, mortgage insurance applies until you reach 78% LTV.

Question 6

What's the difference between FHA and conventional in this county?

Accepted Answer

FHA requires 3.5% down minimum with 580+ FICO. Conventional starts at 3% down but typically needs 620+ FICO. FHA carries mortgage insurance for the life of the loan if down payment is under 10%.

Question 7

Do I need to sell my current home before buying in King City?

Accepted Answer

No. Many buyers carry two mortgages during transition. Lenders evaluate your total debt-to-income ratio. Significant equity in your current home strengthens your application.

Question 8

How does the Sea Otter Classic affect the King City housing market?

Accepted Answer

The annual event brings tourism and economic activity to Monterey County. Spring months see increased visitor traffic. Local property values benefit from the region's reputation for outdoor recreation.

Question 9

What income do I need to qualify in Monterey County?

Accepted Answer

Monterey County's median household income is $94,486. Lenders typically approve loans where your housing payment doesn't exceed 28% of gross income. Exact approval depends on debt and assets.

Question 10

Can I get a VA loan with zero down in King City?

Accepted Answer

Yes. VA loans allow zero-down purchases for eligible veterans and active-duty service members. The funding fee replaces PMI. A 10%+ disability rating exempts you from the funding fee.

Question 11

What's the FHA minimum down payment here?

Accepted Answer

FHA requires 3.5% down minimum with a 580+ FICO score. Upfront mortgage insurance is 1.75% of the loan amount. Annual MIP continues for the life of the loan if you put down less than 10%.

Question 12

Do jumbo loans work in King City?

Accepted Answer

Yes. Jumbo loans apply to purchases above $994,750. They typically require 20%+ down, 700+ FICO, and six months of reserves. Rates usually run 0.125% to 0.5% above conforming.

Question 13

How long does closing take in Monterey County?

Accepted Answer

Most closings take 30 to 45 days from application to funding. Appraisals and title work can add time. Clear title and complete documentation speed the process.

Question 14

What does PMI cost on a conventional loan?

Accepted Answer

PMI typically runs 0.5% to 1.5% annually based on your down payment and credit score. On a $600,000 loan with 10% down, expect $300 to $900 per year. PMI cancels at 78% LTV automatically.

King City mortgage questions answered