Question 1

What is the conforming loan limit in Santa Cruz County?

Accepted Answer

Santa Cruz is a high-cost county, so limits exceed the national baseline. Contact us for the current FHFA limit — it adjusts annually.

Question 2

Can I use a conforming loan to buy a condo in Santa Cruz?

Accepted Answer

Yes, but the condo project must be Fannie Mae or Freddie Mac approved. Unapproved projects require alternative financing.

Question 3

Do conforming loans work for ADU properties in Santa Cruz?

Accepted Answer

They can, but the ADU setup affects how the property is appraised and underwritten. Some lenders are more flexible than others.

Question 4

How is a conforming loan different from a conventional loan?

Accepted Answer

All conforming loans are conventional, but not all conventional loans are conforming. Conforming means it fits Fannie or Freddie guidelines.

Question 5

What credit score gets me the best conforming rate?

Accepted Answer

740 or higher puts you in the best pricing tier. Scores below 700 will cost you more in rate or points.

Question 6

Is mortgage insurance required on conforming loans?

Accepted Answer

Only if you put down less than 20%. PMI cancels automatically once you reach 20% equity in the property.

Conforming Loans in Santa Cruz, CA