Question 1

Can I use a VA loan in Capitola?

Accepted Answer

Yes, if you meet VA service requirements. Capitola falls within Santa Cruz County, which has VA loan limits for those with reduced entitlement.

Question 2

Which loan has lower monthly payments?

Accepted Answer

VA usually wins because there's no monthly mortgage insurance. FHA adds that cost on top of principal and interest every month.

Question 3

Do both loans require a home inspection?

Accepted Answer

Both require an appraisal. VA appraisals include minimum property requirements that are stricter than FHA's in some cases.

Question 4

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down. VA has no official minimum, but most lenders in our network want at least a 620.

Question 5

Is there a loan limit for FHA or VA in Santa Cruz County?

Accepted Answer

Both programs have county-level loan limits. High-cost areas like Santa Cruz County typically have higher limits than the national baseline.

Question 6

Which loan closes faster in a competitive market?

Accepted Answer

Neither is dramatically faster than the other. VA appraisals can sometimes take longer, which matters in Capitola's competitive environment.

FHA vs VA Loans in Capitola, CA