Question 1

Can I use a VA loan to buy in Watsonville?

Accepted Answer

Yes. Watsonville properties are eligible for VA financing. The home must be your primary residence and meet VA minimum property requirements.

Question 2

Do VA loans have higher rates than conventional?

Accepted Answer

No — VA rates typically run lower than conventional. Rates vary by borrower profile and market conditions.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders want at least 620. A score above 740 gets you the best conventional pricing.

Question 4

Is there a down payment requirement for VA loans?

Accepted Answer

No. Eligible borrowers can purchase with zero down. There is a one-time VA funding fee, which can be rolled into the loan.

Question 5

Which loan closes faster in Santa Cruz County?

Accepted Answer

Conventional loans often close faster. VA loans require a VA appraisal, which can add a few days to the timeline.

Question 6

Can I use a VA loan for a second home in Watsonville?

Accepted Answer

No. VA loans require owner-occupancy as a primary residence. Conventional loans work for second homes and investment properties.

Conventional vs VA Loans in Watsonville, CA