Question 1

What makes a loan 'jumbo' in Monterey County?

Accepted Answer

Any loan exceeding the FHFA conforming limit for Monterey County is jumbo. That limit adjusts annually — check current figures before assuming your loan qualifies as conforming.

Question 2

Can I get a jumbo loan with 10% down in Salinas?

Accepted Answer

Some lenders allow 10% down on jumbo loans. Expect stricter credit and reserve requirements at that down payment level.

Question 3

Are jumbo rates higher than conforming rates?

Accepted Answer

Not always. Jumbo rates have undercut conforming rates in some periods. Rates vary by borrower profile and market conditions.

Question 4

Do jumbo loans require private mortgage insurance?

Accepted Answer

Most jumbo lenders skip PMI but require higher down payments or strong reserves instead. Each lender sets their own threshold.

Question 5

Can self-employed borrowers get jumbo loans in Salinas?

Accepted Answer

Yes, but underwriting is tighter. Lenders want two years of tax returns, and net income after deductions is what they count — not gross revenue.

Question 6

Is a jumbo ARM a smart move in Monterey County?

Accepted Answer

It depends on your timeline. If you plan to sell or refi within 7–10 years, an ARM's lower initial rate can save significantly on a large balance.

Jumbo Loans in Salinas, CA — Finance Above Conforming Limits