Question 1

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

Accepted Answer

The 2026 conforming limit is $994,750. Loans above that amount are jumbo with different rates and terms.

Question 2

Is Monterey County an FHA high-cost area?

Accepted Answer

Yes. Monterey County is designated a high-cost area for FHA loans. FHA limits match the conforming limit of $994,750 for 2026.

Question 3

Is Monterey County a VA high-cost area?

Accepted Answer

Yes. VA loans in Monterey County can go up to $994,750 in 2026. The high-cost designation opens more purchasing power for eligible veterans.

Question 4

How much down payment do I need for a conventional loan?

Accepted Answer

Conventional loans require 3% down minimum. At 5% to 10% down, PMI applies. At 20% down, PMI drops entirely.

Question 5

What credit score do I need to qualify?

Accepted Answer

Most conventional lenders want 620 FICO minimum. FHA accepts 580 FICO with 3.5% down. VA and USDA typically require 620+.

Question 6

Can I get a VA loan with zero down?

Accepted Answer

Yes. VA loans allow zero down for eligible veterans and surviving spouses with a Certificate of Eligibility. You'll pay a funding fee instead of PMI.

Question 7

What's the FHA down payment requirement?

Accepted Answer

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

Question 8

How does the Sea Otter Classic affect Seaside housing?

Accepted Answer

The Sea Otter Classic brings 80,000+ visitors to Monterey County annually. Seasonal tourism drives short-term rental demand, which affects long-term housing availability.

Question 9

What income do I need to qualify in Seaside?

Accepted Answer

Monterey County's median household income is $94,486. Most lenders use 43% to 50% debt-to-income ratio to qualify buyers.

Question 10

Can I use USDA financing in Seaside?

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's the difference between FHA and VA loans?

Accepted Answer

FHA requires 3.5% down and charges mortgage insurance for the life of the loan if under 10% down. VA allows zero down with no PMI, only a funding fee.

Question 12

Do I need 20% down to avoid PMI?

Accepted Answer

Yes. 20% down eliminates PMI entirely on a conventional loan. Below 20% down, PMI applies until you hit 78% LTV.

Question 13

How long does it take to close a mortgage?

Accepted Answer

Most conventional loans close in 30 to 45 days. FHA and VA can take 45 to 60 days due to additional requirements.

Question 14

What closing costs should I expect?

Accepted Answer

Closing costs typically run 2% to 5% of the loan amount. They include appraisal, title, underwriting, and recording fees.

Seaside mortgage questions answered