Question 1

Can I use a VA loan to buy in Santa Cruz County?

Accepted Answer

Yes. VA loans have no county-specific restrictions. Santa Cruz County's high prices make the zero-down benefit especially valuable here.

Question 2

Do VA loans have loan limits in Santa Cruz?

Accepted Answer

If you have full VA entitlement, there's no loan limit. Reduced entitlement may apply if you have an existing VA loan.

Question 3

Which loan has a lower interest rate?

Accepted Answer

VA rates typically run lower than conventional. Rates vary by borrower profile and market conditions.

Question 4

Does a conventional loan require mortgage insurance?

Accepted Answer

Yes, if you put down less than 20%. PMI is removed once you reach 20% equity — VA never charges it at all.

Question 5

What credit score do I need for each loan?

Accepted Answer

Conventional lenders typically require 620 minimum. VA lenders generally want 580 to 620, with no VA-set floor.

Question 6

Can I have both a VA and conventional loan at the same time?

Accepted Answer

Yes, in some cases. Remaining VA entitlement determines eligibility. A broker can review your Certificate of Eligibility.

Conventional vs VA Loans in Santa Cruz, CA