Question 1

What is the FHA loan limit in Monterey County?

Accepted Answer

Monterey County qualifies as a high-cost area, so limits exceed the national baseline. Check the current HUD schedule before shopping — limits adjust annually.

Question 2

Can I use FHA to buy a condo in Monterey?

Accepted Answer

Only if the condo project is on HUD's approved list. Many Peninsula buildings aren't approved, so verify before you make an offer.

Question 3

How much is FHA mortgage insurance?

Accepted Answer

You pay an upfront MIP of 1.75% of the loan amount plus a monthly premium. At 3.5% down, the monthly premium stays for the life of the loan.

Question 4

Does FHA allow gift funds for the down payment?

Accepted Answer

Yes. FHA permits 100% of the down payment to come from a gift. The donor must provide a signed gift letter and you can't repay it.

Question 5

How does FHA compare to conventional in Monterey?

Accepted Answer

FHA is usually better under a 700 credit score. Above 700 with 5–10% down, conventional often wins by avoiding lifetime MIP.

Question 6

How long does FHA approval take in Monterey?

Accepted Answer

Most FHA purchases close in 30–45 days. Appraisal requirements are stricter than conventional, so flag any property condition issues early.

FHA Loans in Monterey, CA: Low Down, Real Access