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Conforming Loans in Capitola
Capitola's beachside location makes conforming loans challenging. Most coastal properties exceed the $806,500 limit that qualifies for conforming financing.
Condos near the village and smaller homes inland still fit conforming limits. These represent the entry point for many first-time buyers in Santa Cruz County.
Rates vary by borrower profile and market conditions. Conforming loans offer the lowest rates available because Fannie Mae and Freddie Mac buy them in bulk.
You need 620 minimum credit for conforming approval. Most competitive rates start at 740 or higher.
Down payment starts at 3% for first-time buyers. Conventional wisdom says 20% down, but we close deals with far less every month.
Debt-to-income can't exceed 50% in most cases. Lenders want your total monthly debts under half your gross income.
Every major lender offers conforming loans. The differences show up in overlays—extra requirements beyond Fannie and Freddie minimums.
Some lenders won't touch condos in complexes with ongoing litigation. That matters in Capitola where coastal buildings face saltwater damage claims.
Rate sheets change daily across our 200+ wholesale partners. Shopping one bank means leaving money on the table.
Most Capitola buyers hit the conforming limit fast. A 1,200 square foot cottage near the beach runs $900,000 to $1.2 million easily.
I route these borrowers to jumbo products or have them expand their search radius. Aptos and Soquel offer better conforming loan opportunities.
The 3% down programs work for buyers with strong credit and stable W-2 income. Self-employed borrowers face tighter guidelines even when they qualify.
Jumbo loans take over where conforming loans stop. In Capitola, that crossover happens constantly given local price points.
FHA loans allow lower credit scores and smaller down payments. But they cap at $644,000 in Santa Cruz County—too low for most coastal properties.
Conforming beats jumbo on rate by 0.25% to 0.75% typically. That gap widens when credit drops below 720.
Capitola's condo market needs careful vetting. Lenders require 51% owner occupancy in complexes, and some beachfront buildings don't meet that threshold.
Fire insurance costs have spiked across Santa Cruz County. Your debt-to-income calculation includes the full insurance payment, which can kill deals.
Properties within flood zones require flood insurance. That's common near Soquel Creek and along the village waterfront.
$806,500 for single-family homes in Santa Cruz County. This limit applies countywide, not specific to Capitola alone.
Yes, if the complex meets Fannie Mae or Freddie Mac approval standards. Many older beachfront buildings don't qualify due to deferred maintenance or litigation.
As little as 3% for first-time buyers with strong credit. You'll pay PMI under 20% down, but that drops off once you hit 20% equity.
620 minimum to qualify, 740+ for best rates. Every 20-point drop below 740 costs you in rate pricing.
Yes, by 0.125% to 0.5% daily across our wholesale network. We shop 200+ lenders to find the lowest rate for your profile.
You need a jumbo loan instead. Jumbo rates run higher, but the gap narrows with strong credit and larger down payments.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.