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Salinas sits in Monterey County, where home prices run high relative to local wages. FHA loans close that gap with a 3.5% down payment minimum.
First-time buyers in Salinas compete against cash investors and conventional offers. FHA gives you a fighting chance without a massive down payment saved up.
580 (3.5% down)
Min Credit Score
3.5%
Minimum Down Payment
High-Cost
County Loan Area
Required (MIP)
Mortgage Insurance
Fixed or Adjustable
Rate Type
FHA Loans in Salinas
You need a 580 credit score for the 3.5% down option. Drop below 580 and lenders require 10% down instead.
FHA also checks your debt-to-income ratio — that's your monthly debt divided by gross income. Most lenders cap it at 43%, though some go higher with strong compensating factors.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Salinas.
Salinas sits in Monterey County, where home prices run high relative to local wages. FHA loans close that gap with a 3.5% down payment minimum.
First-time buyers in Salinas compete against cash investors and conventional offers. FHA gives you a fighting chance without a massive down payment saved up.
You need a 580 credit score for the 3.5% down option. Drop below 580 and lenders require 10% down instead.
Not every lender prices FHA the same. Some add overlays — extra requirements on top of FHA minimums — that can knock out otherwise qualified borrowers.
We shop FHA across 200+ wholesale lenders to find who's actually competitive for Salinas borrowers. Rate and fee differences between lenders can be significant. Rates vary by borrower profile and market conditions.
One thing many Salinas buyers miss: FHA loan limits cap how much you can borrow. In Monterey County, confirm the current limit before falling in love with a listing.
FHA requires an appraisal by an FHA-approved appraiser. Properties in rough shape can fail. Know this before writing an offer on a fixer.
Conventional loans drop mortgage insurance once you hit 20% equity. FHA mortgage insurance — called MIP — stays for the life of the loan in most cases.
If you qualify for VA, that's almost always the better call: no down payment, no MIP. USDA is worth a look too if the property is in an eligible rural zone near Salinas.
Salinas has a large workforce in agriculture and service industries. Many buyers here are self-employed or have income that's harder to document — FHA handles that better than most conventional options.
As of April 2026, Monterey County is a high-cost area. That pushes FHA limits above the national baseline, which helps buyers stretch further without jumping to jumbo financing.
Monterey County is a high-cost area, so its FHA limit exceeds the national baseline. Confirm the exact current figure with us before you shop.
FHA goes down to a 500 credit score with 10% down. Below 580, your options narrow fast and fewer lenders will touch the file.
Yes — FHA allows 100% of your down payment to be a gift from a family member. The gift must be documented with a signed letter and paper trail.
For most FHA loans with less than 10% down, MIP lasts the full loan term. Put 10% down and it drops off after 11 years.
Yes, but lenders want two years of tax returns and a current profit-and-loss statement. Write-offs that reduce taxable income can hurt your qualifying income.
Depends on your credit and savings. FHA wins if your score is under 680 or your down payment is under 10%. Conventional is better once you have stronger numbers.