Question 1

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

Accepted Answer

The 2026 conforming limit is $994,750. Loans above that amount are jumbo and typically require 20% down and stronger credit. Jumbo rates usually run 0.125% to 0.5% higher than conforming.

Question 2

Is Monterey County an FHA high-cost area?

Accepted Answer

Yes. Monterey County is designated an FHA high-cost area, which means FHA loan limits match the conforming limit of $994,750 for 2026. This opens FHA financing to higher-priced homes here.

Question 3

Is Monterey County a VA high-cost area?

Accepted Answer

Yes. VA loans in Monterey County follow the high-cost area limit of $994,750 for 2026. Zero-down VA financing is available up to that amount for eligible veterans and active-duty service members.

Question 4

How much do I need to put down on a conventional loan?

Accepted Answer

Conventional loans require a minimum of 3% down. At 5% to 10% down, PMI applies. At 20% down, PMI is waived entirely. The choice depends on your savings and how quickly you want to build equity.

Question 5

Do I need 20% down to avoid PMI?

Accepted Answer

Yes — 20% down is the threshold to skip PMI on a conventional loan. Below 20%, mortgage insurance is required. PMI cancels automatically once your loan balance reaches 78% of the original purchase price.

Question 6

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require a minimum of 620 FICO for conventional loans. Scores above 740 typically qualify for the best rates. Scores between 620 and 680 may face higher rates or stricter down-payment requirements.

Question 7

What's the minimum down payment for an FHA loan?

Accepted Answer

FHA loans require a minimum of 3.5% down 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 your down payment is under 10%.

Question 8

Can I get an FHA loan with less than perfect credit?

Accepted Answer

Yes. FHA loans are available with a 580 FICO and 3.5% down. Even borrowers with credit challenges can qualify if they have stable income and manageable debt. Rates may be higher than conventional, but FHA opens doors for many buyers.

Question 9

Do VA loans require a down payment?

Accepted Answer

No. VA loans offer zero-down financing for eligible veterans, active-duty service members, and surviving spouses with a Certificate of Eligibility. A funding fee replaces PMI; the first-use fee is 2.15% at zero down.

Question 10

Is a VA funding fee the same as PMI?

Accepted Answer

No. VA funding fees and PMI serve different purposes. The funding fee is a one-time cost rolled into the loan. PMI is annual insurance. VA loans skip PMI entirely, making the funding fee a better deal for zero-down buyers.

Question 11

What does the Monterey County median income tell me about qualifying?

Accepted Answer

Monterey County's median household income is $94,486. This benchmark helps lenders assess debt-to-income limits. If your income is near or above this figure, you'll likely qualify for a loan in the $400,000 to $600,000 range.

Question 12

How does the Sea Otter Classic affect Marina's real estate market?

Accepted Answer

The Sea Otter Classic draws 80,000+ visitors to Monterey County annually, boosting local tourism and property values. Homes near the fairgrounds and coastal areas see steady demand from buyers seeking investment properties and vacation rentals.

Marina home loan questions answered