Question 1

What is the FHA loan limit in Santa Cruz County?

Accepted Answer

Santa Cruz County is designated high-cost. Limits are higher than the national baseline — confirm the current limit with us before shopping.

Question 2

Can I buy a condo in Santa Cruz with an FHA loan?

Accepted Answer

Yes, but the condo complex must be FHA-approved. Check the HUD approved condo list before making an offer.

Question 3

How much is FHA mortgage insurance in California?

Accepted Answer

FHA charges an upfront MIP of 1.75% of the loan amount, plus an annual premium. Annual MIP varies by loan size and term.

Question 4

Does FHA work for self-employed borrowers in Santa Cruz?

Accepted Answer

Yes. You'll need two years of tax returns and a year-to-date P&L. FHA uses net income after deductions — that trips up some self-employed buyers.

Question 5

How does FHA compare to conventional loans in Santa Cruz?

Accepted Answer

FHA is easier to qualify for but costs more long-term due to permanent MIP. Borrowers with 620+ scores should compare both programs.

Question 6

Can I use gift funds for my FHA down payment?

Accepted Answer

Yes. FHA allows 100% of the down payment to come from gift funds. The gift must come from an approved source with a signed gift letter.

FHA Loans in Santa Cruz, CA