Question 1

What credit score do I need for a conventional loan in Capitola?

Accepted Answer

Most lenders require at least 620. Higher scores get better rates — 740+ puts you in the best pricing tier.

Question 2

Can I use a conventional loan for a vacation home in Capitola?

Accepted Answer

Yes, but expect a higher down payment — typically 10% minimum. Rates will also be slightly higher than a primary residence.

Question 3

How does PMI work on a conventional loan?

Accepted Answer

PMI is required if you put less than 20% down. Once you reach 20% equity, you can request cancellation — it's not permanent.

Question 4

Are conventional loan rates higher than FHA rates right now?

Accepted Answer

Not always. With strong credit, conventional rates often beat FHA. The total cost picture — including insurance — matters more than the rate alone.

Question 5

What's the conforming loan limit for Santa Cruz County?

Accepted Answer

Conforming limits set the ceiling for conventional financing. Loans above that limit require jumbo financing with stricter qualification standards.

Conventional Loans in Capitola, CA