Question 1

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

Accepted Answer

The minimum is 620. Rates improve significantly at 740 and above, which matters in a high-price market like Santa Cruz.

Question 2

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

Accepted Answer

Yes, but the condo project must be warrantable. HOA financials and owner-occupancy ratios get reviewed — this disqualifies some buildings.

Question 3

How much do I need to put down on a conventional loan?

Accepted Answer

As little as 3% for first-time buyers. Put down 20% to avoid private mortgage insurance and lower your monthly payment.

Question 4

Does PMI go away on a conventional loan?

Accepted Answer

Yes. Once you reach 20% equity, you can request PMI cancellation. It automatically terminates at 22% equity by law.

Question 5

Is a conventional loan better than FHA in Santa Cruz?

Accepted Answer

For buyers with strong credit and 10%+ down, conventional usually wins on long-term cost. FHA makes sense when credit or cash is limited.

Question 6

What is the conforming loan limit for Santa Cruz County?

Accepted Answer

Santa Cruz County qualifies for a higher conforming limit as a high-cost area. Loans above that limit require jumbo financing with stricter guidelines.

Conventional Loans in Santa Cruz, CA