Question 1

Can I use an FHA loan to buy a condo in Scotts Valley?

Accepted Answer

The condo project must be FHA-approved. Many smaller complexes in Santa Cruz County don't qualify, which limits your options.

Question 2

Does FHA have loan limits in Santa Cruz County?

Accepted Answer

Yes. FHA sets county-level limits each year. If the purchase price exceeds the limit, you'll need conventional or jumbo financing.

Question 3

Which loan has lower closing costs?

Accepted Answer

FHA charges a 1.75% upfront MIP at closing, which adds to your costs. Conventional loans skip that fee entirely.

Question 4

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

No, not without refinancing. FHA MIP stays for the life of the loan if you put down less than 10%.

Question 5

What credit score do I need for conventional in Scotts Valley?

Accepted Answer

Most conventional lenders want 620 minimum. But the best rates require 740 or higher — that gap matters a lot in this rate environment.

Question 6

Which loan is faster to close?

Accepted Answer

Conventional typically closes faster. FHA requires an approved appraiser and has stricter property condition standards that can slow things down.

Conventional vs FHA Loans in Scotts Valley, CA