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Capitola's real estate market is shifting as the Capitola Mall redevelopment zoning cleared in March 2026, signaling future density and mixed-use growth.
Veterans buying here have a structural advantage: zero down payment required. That means no savings delay, no PMI equivalent, and immediate equity. The funding fee replaces traditional mortgage insurance and rolls into the loan balance.
5.5%
Interest Rate
$4,258
Monthly P&I
$750,000
Loan Amount
620
Min FICO
$0
Down Payment
30 days
Lock Period
VA Loans in Capitola
VA loans in Capitola start with a Certificate of Eligibility—proof of service as active duty, veteran, or surviving spouse. Credit floor is typically 620 FICO, though 740+ gets the best pricing. Down payment is zero.
Santa Cruz County's median household income of $109,266 supports a $750,000 purchase comfortably. Debt-to-income limits run 41-50% depending on the lender.
Local decision guide
Use this guide to connect va loans eligibility, lender expectations, and local market factors before comparing payment options in Capitola.
Capitola's real estate market is shifting as the Capitola Mall redevelopment zoning cleared in March 2026, signaling future density and mixed-use growth.
Veterans buying here have a structural advantage: zero down payment required. That means no savings delay, no PMI equivalent, and immediate equity. The funding fee replaces traditional mortgage insurance and rolls into the loan balance.
VA loans in Capitola start with a Certificate of Eligibility—proof of service as active duty, veteran, or surviving spouse. Credit floor is typically 620 FICO, though 740+ gets the best pricing. Down payment is zero.
VA lending in California is dominated by portfolio lenders and correspondents who sell to Fannie Mae and Freddie Mac. Retail banks and credit unions compete on rate and speed.
Underwriting is stricter than FHA but more flexible than jumbo. Appraisals are VA-ordered and non-negotiable. Closing timelines run 30-45 days for straightforward cases.
VA loans pencil in Capitola when you're buying at or below the conforming limit ($1,249,125 here) and have stable income. At $750,000, you're well inside that ceiling.
The trade-off: funding fee of $15,975 rolls into your loan balance, raising your total debt. If you have 20% down saved and strong credit, conventional might cost less over 30 years.
Conventional loans at this price point require 20% down ($150,000) to avoid PMI. FHA requires only 3.5% down but carries lifetime mortgage insurance if you put less than 10% down. VA requires zero down and no PMI equivalent—just the funding fee.
The structural choice: conventional locks in the lowest rate but demands the biggest down payment. FHA splits the difference. VA eliminates the down payment entirely. For a Capitola veteran with $50,000 saved, VA is the only realistic path to $750,000.
The Capitola Mall redevelopment zoning approval in March 2026 signals real growth. Up to 1,777 units are now possible on that site. For a buyer locking in a 30-year mortgage today, that kind of density and mixed-use development typically supports long-term...
Manresa Bread opening a bakery-bistro on Ingalls Street in Santa Cruz this spring adds to the neighborhood's appeal. Lifestyle amenities matter when you're committing to a 30-year loan.
Yes. You must provide a Certificate of Eligibility proving active duty, veteran, or surviving-spouse status. The VA issues it free at VA.gov. Without it, you cannot qualify for a VA loan.
At 5.5% interest on a $750,000 purchase with zero down, principal and interest run $4,258 monthly. Add property taxes, insurance, and HOA fees if applicable. This scenario assumes 740 FICO, primary residence, 30-day lock, dated April 9, 2026.
Yes, unless you're rated 10% or higher for VA disability. First-time use funding fee is 2.15% of the loan amount—about $15,975 on a $750,000 loan. It rolls into your balance, so you don't pay it upfront.
No. VA loans are for primary residences only. If you want to buy a second home or investment property in Capitola, you'd need a conventional or FHA loan instead.
Minimum is typically 620 FICO. At 740 FICO, you get the best rates and terms. Lenders care more about stable income and clean recent credit than reserves, since you're putting zero down.