Question 1

What's the conforming loan limit in San Luis Obispo County?

Accepted Answer

The 2026 conforming limit is $1,000,500. FHA and VA loans also max out at $1,000,500. Loans above that amount require jumbo financing.

Question 2

Is San Luis Obispo County an FHA high-cost area?

Accepted Answer

Yes. FHA is designated a high-cost area in San Luis Obispo County. This affects the upfront mortgage insurance premium.

Question 3

Is San Luis Obispo County a VA high-cost area?

Accepted Answer

Yes. VA loans are designated for high-cost areas in San Luis Obispo County. The funding fee and loan limits reflect this.

Question 4

How much do I need to put down on a conventional loan?

Accepted Answer

Conventional loans typically require 3% to 5% down for first-time buyers. You need 20% down to avoid PMI entirely.

Question 5

What credit score do I need to qualify?

Accepted Answer

Conventional loans generally require 620 FICO or higher. FHA accepts 580 FICO with 3.5% down. Most lenders prefer 620+ for VA and USDA.

Question 6

Do I need to be a first-time buyer to use FHA?

Accepted Answer

No. FHA is available to any borrower who meets credit and down-payment requirements. First-time buyer status is not required.

Question 7

How does PMI work on a conventional loan?

Accepted Answer

PMI is required when you put down less than 20%. It cancels automatically at 78% LTV. PMI protects the lender, not you.

Question 8

What's the upfront cost on an FHA loan?

Accepted Answer

FHA charges an upfront mortgage insurance premium of 1.75% of the loan amount. This rolls into your loan balance.

Question 9

Can a VA borrower with a disability rating skip the funding fee?

Accepted Answer

Yes. VA borrowers with a 10% or higher disability rating are exempt from the funding fee. Other VA borrowers pay a funding fee starting at 2.15%.

Question 10

What does the Shabang Music Festival mean for the Arroyo Grande market?

Accepted Answer

Shabang draws thousands of visitors annually and boosts the area's profile. Strong event attendance signals an active community.

Question 11

How does the building height initiative affect property values?

Accepted Answer

Grover Beach voters are deciding on height limits. Restrictions can limit future development and may support existing property values.

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 San Luis Obispo County, scaled by family size. Contact a lender for your exact limit.

Question 13

Can I get a jumbo loan in Arroyo Grande?

Accepted Answer

Yes. Jumbo loans are available for amounts above $1,000,500. Jumbo typically requires 700+ FICO, 20% down, and 6-12 months of reserves.

Question 14

How long does it take to close a mortgage?

Accepted Answer

Most mortgages close in 30 to 45 days. FHA and VA loans may take slightly longer due to appraisal requirements.

Arroyo Grande mortgage questions answered