Question 1

What is the conforming loan limit in Monterey County for 2026?

Accepted Answer

The 2026 conforming limit is $994,750. FHA and VA loans cap at the same amount because Monterey County is a high-cost area.

Question 2

Do I need 20% down to buy a home in Salinas?

Accepted Answer

Yes — conventional loans accept 3% to 5% down. You'll pay PMI below 20%, but it cancels at 78% LTV automatically.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders want 620+ for conventional loans. Expect tighter terms and higher rates below 640.

Question 4

Is Monterey County an FHA high-cost area?

Accepted Answer

Yes. Monterey County is designated high-cost for FHA. The loan limit matches the conforming ceiling at $994,750.

Question 5

Is Monterey County a VA high-cost area?

Accepted Answer

Yes. VA loans in Monterey County follow the high-cost designation. The limit is $994,750, same as conventional and FHA.

Question 6

How does the Monterey Jazz Festival affect the local housing market?

Accepted Answer

The Jazz Festival and Sea Otter Classic bring tourism to the region. This seasonal activity supports local employment and buyer interest.

Question 7

What down payment does FHA require in Salinas?

Accepted Answer

FHA requires a minimum 3.5% down with a 580+ FICO score. The upfront mortgage insurance premium is 1.75% of the loan amount.

Question 8

Can I get a VA loan with zero down in Salinas?

Accepted Answer

Yes. VA borrowers with a Certificate of Eligibility can purchase with zero down. A funding fee applies and rolls into the loan.

Question 9

What is the VA funding fee and can it be waived?

Accepted Answer

The VA funding fee is 2.15% on a zero-down purchase for first-time users. It's waived only for borrowers with a 10%+ VA disability rating.

Question 10

Does Monterey County qualify for USDA loans?

Accepted Answer

USDA loans are available in eligible rural areas of Monterey County. Income limits are set per household size and subject to USDA's published cap for this county.

Question 11

What happens to FHA mortgage insurance if I put down 10% or more?

Accepted Answer

FHA mortgage insurance runs for life if you put down less than 10%. With 10%+ down, it cancels after 11 years.

Question 12

Can I cancel PMI on a conventional loan before 20% equity?

Accepted Answer

PMI cancels automatically at 78% LTV. You can request cancellation at 80% LTV if your loan terms allow it.

Question 13

What is the median household income in Monterey County?

Accepted Answer

Monterey County's median household income is $94,486. This matters for USDA and some first-time buyer program eligibility.

Question 14

When does a jumbo loan apply in Salinas?

Accepted Answer

Jumbo loans apply to purchases above the 2026 conforming limit of $994,750. Jumbo rates typically run 0.125% to 0.5% higher than conforming.

Question 15

What down payment do jumbo lenders typically require?

Accepted Answer

Jumbo lenders usually want 20% down or more. Credit scores of 700+ and six to twelve months of reserves are standard.

Salinas mortgage FAQ: answers for Monterey County buyers