Question 1

What's the conforming loan limit in Sonoma County for 2026?

Accepted Answer

The 2026 conforming limit is $897,000. FHA and VA loans carry the same ceiling. Loans above that amount are jumbo.

Question 2

Is Sonoma County an FHA high-cost area?

Accepted Answer

Yes. Sonoma County qualifies as an FHA high-cost area. FHA loan limits match the conforming ceiling at $897,000.

Question 3

Is Sonoma County a VA high-cost area?

Accepted Answer

Yes. VA loans in Sonoma County cap at $897,000. This matches the 2026 conforming limit.

Question 4

How much down payment do I need to buy in Petaluma?

Accepted Answer

Conventional loans typically require 5% to 20% down. FHA allows 3.5% down with a 580+ credit score. VA loans offer zero down for eligible veterans.

Question 5

What credit score do I need for an FHA loan?

Accepted Answer

FHA requires a minimum 580 FICO score for the 3.5% down program. Some lenders ask for 600 or higher. Better scores bring better rates.

Question 6

Do I need 20% down to avoid PMI?

Accepted Answer

Yes. With 20% down on a conventional loan, you skip PMI entirely. Below 20% down, PMI applies until you reach 78% LTV.

Question 7

How does PMI work on a conventional loan?

Accepted Answer

PMI protects the lender if you default. It applies when your down payment is less than 20%. PMI cancels at 78% LTV automatically.

Question 8

What's the difference between FHA MIP and conventional PMI?

Accepted Answer

FHA MIP runs for the life of the loan if you put down less than 10%. With 10%+ down, MIP cancels after 11 years. Conventional PMI cancels sooner.

Question 9

Can I use a VA loan to buy in Petaluma?

Accepted Answer

Yes. VA loans are available in Petaluma and cap at $897,000 in 2026. Zero down is allowed for eligible veterans and active-duty service members.

Question 10

What's the VA funding fee?

Accepted Answer

The funding fee replaces PMI on VA loans. At zero down, it's 2.15% of the loan amount. Disabled veterans with a 10%+ rating are exempt.

Question 11

How does Medtronic's exit affect the Petaluma housing market?

Accepted Answer

Medtronic is leaving Sonoma County by 2028, affecting over 300 jobs. This workforce shift may pressure local home values. Timing your purchase around job changes matters.

Question 12

What income do I need to qualify for a mortgage in Petaluma?

Accepted Answer

Lenders typically cap debt-to-income at 43% to 50%. Sonoma County's median household income is $102,840. Most buyers qualify for conventional loans in the mid-range.

Question 13

How long does it take to close a mortgage in California?

Accepted Answer

Conventional loans typically close in 30 to 45 days. FHA and VA loans may take 45 to 60 days. Petaluma lenders generally follow state timelines.

Question 14

What are typical closing costs in Petaluma?

Accepted Answer

Closing costs run 2% to 5% of the loan amount. They include appraisal, title insurance, escrow, and lender fees. Ask your lender for a Loan Estimate within three days.

Petaluma mortgage questions answered