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King City's ag sector keeps growing—Reservoir Farms just opened a 24-acre ag-tech hub in nearby Salinas with 12 robotics startups. That kind of job stability matters when you're financing a home here. A $937,500 purchase at 5.5% runs about $4,258 monthly for principal and interest alone.
The median household income in Monterey County sits at $94,486, which means most buyers here are stretching into the $700k–$900k range. VA loans let you do that without a down payment, which changes the math entirely for military families.
VA Loans in King City
You need a 740 FICO or higher to lock in the best VA rates here. Lenders typically want a debt-to-income ratio under 41%, though some go to 50% if your credit and reserves are solid. King City buyers usually qualify with $750k in loan amount and zero down.
Your VA entitlement covers the full purchase price up to the county limit of $994,750. The funding fee (usually 2.3% for first-time users) wraps into the loan, so you're not paying cash upfront. That $94k median income buys you serious purchasing power when you're not saving for a down payment.
Local decision guide
Use this guide to connect va loans eligibility, lender expectations, and local market factors before comparing payment options in King City.
King City's ag sector keeps growing—Reservoir Farms just opened a 24-acre ag-tech hub in nearby Salinas with 12 robotics startups. That kind of job stability matters when you're financing a home here. A $937,500 purchase at 5.5% runs about $4,258 monthly for principal and interest alone.
The median household income in Monterey County sits at $94,486, which means most buyers here are stretching into the $700k–$900k range. VA loans let you do that without a down payment, which changes the math entirely for military families.
You need a 740 FICO or higher to lock in the best VA rates here. Lenders typically want a debt-to-income ratio under 41%, though some go to 50% if your credit and reserves are solid. King City buyers usually qualify with $750k in loan amount and zero down.
California VA lenders compete hard on rates and closing costs because the VA loan volume is steady. Most major banks and credit unions offer VA 30-year fixed, and they're all chasing the same borrowers. Rates move daily, but the spread between lenders is usually 0.25% or less.
Overlays exist—some lenders won't touch properties in flood zones or require higher reserves—but the baseline VA product is straightforward. You'll find the fastest closings with lenders who specialize in VA, not generalists who treat it as a side product.
VA 30-year fixed makes sense in King City if you're staying put for at least five years. The funding fee is real money—roughly $17,250 on a $750k loan—so you need time to recoup it. If you're military and have entitlement left, there's no reason to use conventional financing.
It doesn't make sense if you're planning to move or refinance within three years. The funding fee eats into your equity, and you'll pay it again on your next VA loan unless you're disabled. For King City's stable ag and government workforce, though, most buyers stay.
A conventional 80/20 loan at the same $937,500 price would require $187,500 down and PMI of roughly $450–$550 monthly until you hit 20% equity. VA zero-down with a funding fee wrapped in the loan saves you that down payment and kills PMI entirely.
The tradeoff: VA funding fee is one-time, but it's larger upfront. Most King City buyers come out ahead with VA, especially if they're not sitting on $200k in liquid savings.
Navigator Charter Schools is planning three new TK-12 campuses across Monterey County starting 2026–27, including one in Salinas. If you're buying in King City with school-age kids, that expansion matters—it signals investment in the area and gives you options beyond traditional public schools.
Monterey County Supervisors just approved $9.5 million in road and park projects funded by Measure AA. Better roads and parks don't sound like mortgage news, but they mean your neighborhood is getting attention and your property value has tailwinds.
No. VA loans are zero-down. You pay a funding fee instead of a down payment, and it rolls into the loan balance. No PMI required.
Principal and interest run $4,258 monthly at 5.5% on a 30-year fixed. Property taxes, insurance, and HOA (if any) are separate. Rate as of April 8, 2026.
740 FICO is the floor for competitive rates. Some lenders go lower with compensating factors like strong reserves or lower debt-to-income ratio.
Yes. Your entitlement is reusable. Once you pay off a VA loan, you can use your benefit again. You can even have two VA loans open at the same time if you need to.
Roughly 2.3% for first-time users; on $750k that's ~$17,250. Only disabled veterans rated 0% by the VA are exempt. It wraps into your loan, so you don't pay cash upfront.