Question 1

What is the conforming loan limit in Monterey County?

Accepted Answer

The FHFA sets conforming limits annually. Monterey County qualifies as a high-cost area, so limits are higher than the national baseline.

Question 2

Do jumbo loans require a larger down payment?

Accepted Answer

Most jumbo lenders require 10-20% down. Some programs allow less, but expect tighter credit and reserve requirements in exchange.

Question 3

Are jumbo rates higher than conventional rates?

Accepted Answer

Not always. Jumbo rates can be competitive with conventional. Rates vary by borrower profile and market conditions.

Question 4

Can I avoid PMI on a conventional loan?

Accepted Answer

Put 20% down and PMI goes away. Below that, you'll pay it monthly until you hit 20% equity.

Question 5

Which loan is easier to qualify for?

Accepted Answer

Conventional has lower barriers — 620 credit and 3% down. Jumbo demands stronger credit, more assets, and tighter debt ratios.

Question 6

Can a broker help me decide between the two?

Accepted Answer

Yes — and it's worth the call. We run your numbers against 200+ lenders and tell you exactly which path makes sense.

Conventional vs Jumbo Loans in Sand City, CA