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Seaside sits in a competitive Monterey County market where conventional loans give you leverage. Rate cuts expected later in 2026 could improve borrowing power, but timing your purchase around Fed policy is guessing.
Most Seaside buyers use conventional financing because it works for primary homes, second properties, and investment deals. You get lower rates than FHA if your credit is strong.
Conventional Loans in Seaside
You need 620 minimum credit for conventional approval, but 740+ unlocks the best rates. Plan for 3% down on a primary home or 15-25% for investment property in Seaside.
Debt-to-income caps at 50% with strong credit and reserves. Lenders want two months of payments in the bank after closing. Self-employed borrowers need two years of tax returns showing stable income.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Seaside.
Seaside sits in a competitive Monterey County market where conventional loans give you leverage. Rate cuts expected later in 2026 could improve borrowing power, but timing your purchase around Fed policy is guessing.
Most Seaside buyers use conventional financing because it works for primary homes, second properties, and investment deals. You get lower rates than FHA if your credit is strong.
You need 620 minimum credit for conventional approval, but 740+ unlocks the best rates. Plan for 3% down on a primary home or 15-25% for investment property in Seaside.
We shop 200+ wholesale lenders to find who prices Seaside properties best. Some lenders prefer coastal California and price accordingly. Others hit you with location overlays that kill your rate.
Conventional loans have strict appraisal standards. Seaside properties near Fort Ord or older coastal homes sometimes need repair work before funding. Know this before you write an offer.
Buyers overestimate how much down payment matters. The jump from 5% to 20% down saves you PMI but often delays homeownership by years. Run the numbers on buying sooner with less down versus waiting.
Conventional loans let you negotiate seller credits up to 3-9% depending on down payment. In Seaside's market, asking for $8,000 in credits beats asking the seller to drop their price.
FHA allows 580 credit and 3.5% down, but you pay mortgage insurance for the loan's life. Conventional PMI drops off at 78% loan-to-value automatically. That difference costs $150-300 monthly on typical Seaside purchases.
Jumbo loans kick in above $832,750 in Monterey County. If you're borderline, structure your purchase to stay conforming. The rate difference runs 0.25-0.75% higher on jumbos right now.
Seaside's proximity to military bases means some neighborhoods have mixed-use zoning. Lenders scrutinize properties near commercial areas or former Fort Ord land. Get a pre-approval that accounts for property type before touring homes.
Monterey County has strict environmental overlays. Properties in coastal zones or near wetlands face additional appraisal requirements. Your conventional lender needs an appraiser familiar with California coastal regulations.
You need 620 minimum, but 740+ gets you the best rates. Most Seaside approvals happen between 680-750 credit scores.
3% down works for primary homes. Investment properties need 15-25% down depending on your experience as a landlord.
No. PMI drops automatically at 78% loan-to-value. You can request removal at 80% with an appraisal showing value growth.
Yes. Conventional loans work for 1-4 unit investment properties. Expect 15-25% down and higher rates than owner-occupied purchases.
Conventional appraisals are strict. Older homes or properties near Fort Ord may need repairs before funding. Get a pre-inspection.