Question 1

What credit score do I need for a conventional loan in Salinas?

Accepted Answer

Minimum 620 for approval, but 640+ gets competitive rates. Scores above 740 unlock the lowest rates and eliminate some lender overlays.

Question 2

How much down payment do conventional loans require?

Accepted Answer

First-time buyers can put down 3%, others need 5% minimum. Putting down 10-20% reduces mortgage insurance and strengthens your offer.

Question 3

Can I use seasonal ag income for conventional loan approval?

Accepted Answer

Yes, but you need two years of tax returns showing consistent earnings. Manual underwriting handles income fluctuations better than automated systems.

Question 4

When does PMI drop off conventional loans?

Accepted Answer

PMI cancels automatically at 78% loan-to-value. You can request removal at 80% LTV once you hit 20% equity through payments or appreciation.

Question 5

Are conventional rates better than FHA in Salinas?

Accepted Answer

For buyers with 640+ credit, conventional costs less long-term. FHA charges lifetime mortgage insurance while conventional PMI cancels at 20% equity.

Question 6

How do Salinas conventional rates compare to jumbo loans?

Accepted Answer

Conventional conforming rates run 0.25-0.50% lower than jumbo. Stay under $806,500 in Monterey County to access conforming pricing.

Conventional Loans in Salinas: Competitive Rates for Qualified Monterey County Buyers