Question 1

What credit score do I need for a community mortgage in Watsonville?

Accepted Answer

Most programs accept 580 or higher. Some consider alternative credit with no traditional score if you show 12 months of on-time rent and utility payments.

Question 2

Can I use seasonal farm work income to qualify?

Accepted Answer

Yes. Community programs allow seasonal income documentation with two years of history. We average your income and factor in employment gaps that traditional loans reject.

Question 3

Do community mortgages require mortgage insurance?

Accepted Answer

It depends on the program. Some waive MI entirely, others charge it but allow cancellation at 20% equity, unlike FHA which charges for life on minimal down deals.

Question 4

How much down payment do I need?

Accepted Answer

As low as 3% for most programs. Stack that with downpayment assistance grants and your out-of-pocket cash can drop to closing costs only.

Question 5

What's the maximum loan amount for community mortgages here?

Accepted Answer

Most cap around $700,000, which covers typical Watsonville properties. Some programs go higher for larger families or targeted neighborhoods.

Question 6

Do I have to be a first-time buyer?

Accepted Answer

Not always. First-timers get priority in some programs, but many community mortgages serve repeat buyers who meet income or property location requirements.

Community Mortgages in Watsonville: Flexible Programs for Underserved Borrowers