Question 1

What is the conforming loan limit in Santa Cruz County?

Accepted Answer

FHFA sets conforming limits annually. Santa Cruz County qualifies as a high-cost area, so limits are above the national baseline. Check the current FHFA limit before assuming you need jumbo.

Question 2

Do jumbo loans always have higher rates than conventional?

Accepted Answer

Not always. Jumbo rates can actually run close to conforming rates for strong borrowers. Rates vary by borrower profile and market conditions.

Question 3

How much down payment does a jumbo loan require in Capitola?

Accepted Answer

Most jumbo lenders want 10–20% down. Some programs allow less, but expect stricter credit and reserve requirements when you put down under 20%.

Question 4

Can I use a conventional loan to buy in Capitola?

Accepted Answer

Yes, if your loan amount stays within the conforming limit. Many Capitola purchases exceed that threshold, which pushes buyers into jumbo territory.

Question 5

What credit score do I need for a jumbo loan?

Accepted Answer

Most jumbo lenders want 700 or higher. A few go down to 680, but you'll pay for it in rate. Conventional loans are more forgiving, starting around 620.

Question 6

How many months of reserves do jumbo lenders require?

Accepted Answer

Expect 12 months of reserves as the baseline for most jumbo programs. Some lenders require more depending on loan size and borrower profile.

Conventional vs Jumbo Loans in Capitola, CA