Question 1

What is the conforming loan limit in Santa Cruz County?

Accepted Answer

Santa Cruz County qualifies as a high-cost area. The limit exceeds the national baseline — check current FHFA tables for the exact figure.

Question 2

Can I use a conforming loan to buy a condo in Capitola?

Accepted Answer

Yes, but the condo project must meet Fannie Mae or Freddie Mac approval standards. Warrantability issues are common in older coastal buildings.

Question 3

Do conforming loans require PMI?

Accepted Answer

PMI is required if your down payment is under 20%. It cancels automatically once your loan balance drops to 80% of the home's value.

Question 4

How does my credit score affect my conforming rate?

Accepted Answer

Conforming loans use risk-based pricing. Scores above 740 get the best rates — every tier below that adds cost to your rate or fees.

Question 5

Is a conforming loan better than jumbo for Capitola buyers?

Accepted Answer

If you can stay under the conforming limit, you almost always get a better rate. A larger down payment to hit that threshold often makes financial sense.

Conforming Loans in Capitola, CA — Rates That Actually Compete