Santa Cruz County, CA 2021 FHA Loan Limits
FHA Loan Limits
Local Loan Limits — Santa Cruz County, CA
FHA and conventional Loan limits vary based on the number of living-units on the property. FHA loans are only allowed on 1 to 4 living-unit properties. These 1 to 4 unit properties can be purchased with an FHA loan as long as the owner occupies one of the unit. Properties with over 4 units are considered commercial and do not quality for FHA or conventional loans.
Loan Limit Summary
Limits for FHA Loans in Santa Cruz County, California range from $822,375 for 1 living-unit homes to $1,581,750 for 4 living-units. Conventional Loan Limits in Santa Cruz County are $822,375 for 1 living-unit homes to $1,581,750 for 4 living-units. The 2021 Home Equity Conversion Mortgage (HECM) limits in Santa Cruz County is $822,375. HECM limit does not depend on the size of the home.
What are Conventional Loans?
Conventional loans (also called "conforming") are loans that conform to the requirements set by Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac buy home loans from lenders to provide liquidity. This allows lenders to continue lending to home buyers. Otherwise, banks might not have enough money on hand continue lending. Fannie and Freddie set strict standards for the types of loans they will buy.
Santa Cruz County has high cost limits to compensate for above average housing prices. Limits in Santa Cruz County are above the 2021 national floor.
FHA Home Appraisal in Santa Cruz County
To see if a home qualifies for an FHA loan, the property must be appraised by an approved FHA appraiser. Find FHA-approved appraisers in Santa Cruz County. If you need a home inspector, click here to find FHA-approved inspectors in Santa Cruz County. You can also save time by looking for FHA Condos that have already been approved.
VA Loan Limits in Santa Cruz County
VA Loans are similar to FHA Loans in that it allows you to buy a home with very little money down. However VA Loans are only available to veterans of the Armed Forces. With VA loans the Department of Veterans Affairs guarantees the loan on the veteran's behalf. The maximum the VA will guarantee is set to the same amount as the single-family Fannie/Freddie Loan Limit. So the Santa Cruz County, CA 2021 VA Loan Limit is $822,375
How to qualify for an FHA Loan in Santa Cruz County, California?
The minimum loan amount in Santa Cruz County is $5,000 dollars and may go up to $1,581,750 depending on home size and loan type. In order to qualify for an FHA loan, you must be planning to live in the home. Although a loan can include some renovation costs, FHA loans cannot be used for real estate investments in Santa Cruz County.
Additionally, your loan amount cannot exceed the value of home you are purchasing. Learn more about FHA Loan Requirements.
Cities and ZIP Codes in Santa Cruz County
The FHA Limits, VA Loan Limits, HECM Loan Limits, and Conforming Loan Limits listed on this page apply to Santa Cruz County, California which includes the following cities: Watsonville, Santa Cruz, Aptos, Scotts Valley, Soquel, Capitola, Los Gatos, Boulder Creek, Freedom, Felton, Ben Lomond, Davenport, Brookdale, and Mount Hermon.
Santa Cruz County loan limits also apply to the following ZIP codes: 95076, 95060, 95062, 95003, 95066, 95073, 95010, 95033, 95006, 95019, 95065, 95018, 95005, 95077, 95001, 95063, 95061, 95064, 95067, 95017, 95007, and 95041.