Question 1

What's the 2026 conforming loan limit in Monterey County?

Accepted Answer

The 2026 conforming limit is $994,750. Loans above that require jumbo financing with 20% down and stronger credit.

Question 2

Is Monterey County an FHA high-cost area?

Accepted Answer

Yes. Monterey County is designated a high-cost area for FHA loans. This affects the upfront mortgage insurance premium.

Question 3

Is Monterey County a VA high-cost area?

Accepted Answer

Yes. VA loans in Monterey County follow high-cost area rules. This impacts the funding fee and maximum loan amount.

Question 4

How much down payment do I need to buy in Sand City?

Accepted Answer

Conventional loans typically require 5% to 20% down. FHA allows 3.5% down with a 580+ credit score. VA and USDA borrowers may qualify for zero down.

Question 5

What credit score do I need for an FHA loan?

Accepted Answer

FHA requires a minimum 580 FICO score for 3.5% down. Scores of 620+ open more lender options and better rates.

Question 6

Do I need 20% down to avoid PMI on a conventional loan?

Accepted Answer

Yes. At 20% down (80% LTV), you skip PMI entirely. Below 20% down, PMI applies until you reach 78% LTV.

Question 7

How does the Sea Otter Classic affect Sand City's housing market?

Accepted Answer

The Sea Otter Classic and Monterey Jazz Festival bring seasonal tourism to the region. This can affect rental demand and short-term property values.

Question 8

What's the upfront mortgage insurance cost on an FHA loan?

Accepted Answer

FHA charges 1.75% upfront mortgage insurance on the loan amount. This rolls into your loan balance and is paid over time.

Question 9

Does FHA mortgage insurance ever go away?

Accepted Answer

Yes, but it depends on your down payment. With 10%+ down, MIP cancels after 11 years. Below 10% down, MIP runs for the full loan term.

Question 10

What's the VA funding fee?

Accepted Answer

VA funding fee is 2.15% at zero down for first-time use. Subsequent VA loans cost 3.3%. Veterans with 10%+ disability rating are exempt.

Question 11

Can I use a USDA loan in Sand City?

Accepted Answer

USDA loans require a rural-eligible property. Sand City itself may not qualify, but nearby Monterey County areas could. Income limits apply by household size.

Question 12

What income do I need to qualify for a USDA loan?

Accepted Answer

USDA caps household income at the area-specific threshold for this county. The limit varies by family size. Contact a lender to confirm eligibility.

Question 13

How does Monterey County's median income affect my buying power?

Accepted Answer

Monterey County's $94,486 median income helps determine USDA and some conventional loan eligibility. Your actual income and debt determine your approval.

Question 14

What's the difference between conventional and FHA at this price point?

Accepted Answer

Conventional loans above $994,750 become jumbo and require 20% down. FHA stays available up to $994,750 with 3.5% down but carries lifetime mortgage insurance if down payment is under 10%.

Sand City mortgage questions answered