Among the cases I reviewed, there was a significant difference in loan conditions based solely on credit score. Two families were looking for homes in Monterey with similar budgets; the one with a credit score over 740 easily qualified for a jumbo loan, while the one in the 660 range had to reselect properties to fit within their loan limit. This difference is particularly pronounced in Monterey due to local characteristics.

Looking at the recent market, the median sale price in the city of Monterey is $999,402 (Redfin, as of May 2026, down 11.6 percent from the previous year). For Monterey County as a whole, the figure is around $903,000 (Property Focus, as of January 2026). Both figures are close to or have already exceeded the 2026 core loan limit of $994,750 for Monterey County.

Monterey County is classified as a high-cost area by the FHFA, which means the loan limits are set higher than the national baseline, but they do not reach the maximum limits seen in places like Los Angeles. If a property price exceeds $994,750, it is immediately classified as a jumbo loan, which often requires a credit score of 700 or higher and a down payment of 10 to 20 percent. If the credit score is below that, approval may be blocked even with the same budget, so it is necessary to check the credit score before selecting properties.

Monterey is home to the Presidio of Monterey Army Base, which houses the Defense Language Institute, resulting in a higher proportion of active-duty and veteran families compared to other areas. For these families, VA loans, which can be accessed without a down payment and are less affected by credit scores, become a realistic alternative. VA loans can also apply to properties exceeding jumbo loan limits, making them a more favorable option for young active-duty families who have not yet built up their credit scores.

Raising a credit score takes time, so it is advisable to check it at least three to four months before starting to look at properties. Simply lowering credit card utilization and clearing up late payment records can improve scores, but starting this process right before signing a property contract may not yield results in time.

Due to its nature as a tourist city, there is a steady inquiry for properties intended for second homes or short-term rentals, but it is important to note that investment conditions within conventional loans can be stricter than those for primary residences. Families considering relocating to California after retirement should also account for the differences in property tax assessment methods compared to their previous residences in their budgets.

When choosing a lending institution, it is wise to check if they have experience handling jumbo loans. Jumbo loans have stricter underwriting criteria and documentation requirements than conventional loans, so institutions that frequently deal with jumbo loans in high-cost areas like Monterey often lead the approval process more smoothly. Jumbo loans also require more thorough income documentation, so families with self-employment income or foreign income should allow ample time for document preparation.

Monterey is a small city focused on tourism and education, and it is far from areas designated for USDA loans. Families moving from other states should reflect on how California's property tax rates and fire insurance conditions may differ significantly from their previous residences in their budgets. Korean families that prioritize school districts should refer to GreatSchools ratings, but it is advisable to verify school district boundaries at the specific address before purchasing.

Ultimately, in Monterey, credit scores serve as a practical standard that determines approval for both conventional and jumbo loans, and for those with military experience, VA loans provide a way to bypass this requirement. If the purpose is investment, one must also consider the risk of rental demand fluctuating seasonally due to the area's tourist nature. This article does not constitute investment or legal advice, and it is recommended to consult with a loan officer and experts before making any actual contracts. Tax or immigration-related procedures can vary significantly based on individual circumstances, so it is advisable to consult with an accountant or immigration attorney separately.