Santa Cruz FHA Loan Rates, Closing Costs & Stats

SANTA CRUZ-WATSONVILLE, CA

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    • FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

    FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

    While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

    For additional requirements as defined by the FHA, click here.

    Santa Cruz's 43 lenders originated 249 FHA loans during 2021. The total origination value was $126,355,000, with an average FHA loan value of $507,450.

    Santa Cruz FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Santa Cruz averaged 6.02% for the week of 2023-01-27, compared to the national average (all FHA variants) of 6.186% for the same period.

    Santa Cruz's average FHA mortgage closing costs are $14,413.

    The average rate for the prior week (2023-01-20) was 5.79% and one month ago for the week of 2022-12-23, the average rate was 6.28%.

    The average rate one year ago was 3.47%.

    For refis of the same type during the week of 2023-01-27, the average rate was 5.88%.

    Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

    Santa Cruz FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Santa Cruz level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Closing Costs
    QUICKEN LOANS, LLC 20 2.62% $13,380
    UNITED WHOLESALE MORTGAGE, LLC 14 2.70% $17,065
    FREEDOM MORTGAGE CORPORATION 12 2.70% $10,794
    Flagstar Bank, FSB 9 2.88% $16,288
    VILLAGE CAPITAL MORTGAGE 5 2.50% $9,071
    PENNYMAC LOAN SERVICES, LLC 5 2.98% $10,852
    MOUNTAIN WEST FINANCIAL, INC. 5 3.23% $22,075
    CALIBER HOME LOANS, INC. 5 2.74% $11,382
    MASON MCDUFFIE MORTGAGE CORPORATION 5 2.90% $20,052
    LAKEVIEW LOAN SERVICING, LLC 5 2.83% $8,020
    HOME POINT FINANCIAL CORPORATION 5 2.40% $12,592
    Lakeview Community Capital, LLC 3 2.63% $10,810
    HOME APPROVALS DIRECT, INC. 3 3.50% $15,451
    HOMEBRIDGE FINANCIAL SERVICES, INC. 3 2.42% $9,137
    CROSSCOUNTRY MORTGAGE, LLC 3 3.08% $20,152
    BAY EQUITY LLC 2 2.88% $17,212
    AMERICAN PACIFIC MORTGAGE CORPORATION 2 3.00% $22,853
    GUARANTEED RATE, INC. 2 3.38% $17,480
    GUILD MORTGAGE COMPANY 2 2.38% $12,516
    LENDUS, LLC 2 2.63% $17,519
    Mr. Cooper ( Nationstar Mortgage ) 2 3.25% $9,641
    NATIONS DIRECT MORTGAGE, LLC 2 3.38% $20,726
    Paramount Residential Mortgage Group, Inc. 2 2.50% $15,840
    PLANET HOME LENDING, LLC 2 2.88% $12,773
    Wells Fargo Bank 2 2.81% $13,194
    Bank of England 1 3.25% $35,699
    Loan Simple, Inc. 1 2.50% $17,052
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 1 2.50% $16,072
    BROKER SOLUTIONS, INC. 1 2.75% $13,729
    STEARNS LENDING, LLC 1 3.13% $17,924
    UNITED SECURITY FINANCIAL CORP 1 2.50% $6,875
    NATIONWIDE MORTGAGE BANKERS, INC. 1 3.00% $7,649
    AmeriHome Mortgage Company, LLC 1 2.63% $8,457
    ACADEMY MORTGAGE CORPORATION 1 3.25% $15,654
    Amerifirst Financial, Inc. 1 3.25% $12,844
    PREMIER MORTGAGE RESOURCES, L.L.C. 1 3.13% $16,671
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 3.88% $21,877
    First Guaranty Mortgage Corporation 1 2.25% $6,338
    Equity Prime Mortgage LLC 1 2.25% $19,458
    INTELLILOAN, INC. 1 2.50% $8,960
    JMAC LENDING, INC. 1 2.50% $8,473
    ENVOY MORTGAGE, LTD 1 2.75% $24,049
    Carrington Mortgage Services, LLC 1 2.75% $17,983

    The top Santa Cruz FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 20 FHA loans originated. Their average total fees are $13,380, which is $3,686 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

    The lowest fee Santa Cruz FHA lenders (with over 10 loans originated) are FREEDOM MORTGAGE CORPORATION ($10,794), QUICKEN LOANS, LLC ($13,380), UNITED WHOLESALE MORTGAGE, LLC ($17,065), .

    The lowest rate Santa Cruz FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.62%), FREEDOM MORTGAGE CORPORATION (2.70%), UNITED WHOLESALE MORTGAGE, LLC (2.70%), .

    Santa Cruz FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    SANTA CRUZ-WATSONVILLE, CA SANTA CRUZ 2022 $970,800 $1,243,050 $1,502,475 $1,867,275

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Santa Cruz (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
    2018-01-01 $899,472 (5.9%) $1,396,805 (9.6%) 3.34 220
    2018-02-01 $899,250 (5.9%) $1,383,211 (6.8%) 3.26 245
    2018-03-01 $975,000 (9.9%) $1,368,314 (3.5%) 3.42 285
    2018-04-01 $950,000 (5.2%) $1,504,485 (12.4%) 3.22 337
    2018-05-01 $939,250 (4.5%) $1,461,802 (11.9%) 3.14 380
    2018-06-01 $975,000 (5.9%) $1,455,698 (12.0%) 3.25 422
    2018-07-01 $964,500 (4.3%) $1,407,289 (8.8%) 3.22 474
    2018-08-01 $930,253 (3.4%) $1,341,335 (6.7%) 3.11 526
    2018-09-01 $925,000 (2.8%) $1,320,901 (5.7%) 3.10 561
    2018-10-01 $897,000 (-0.2%) $1,311,670 (6.3%) 3.03 562
    2018-11-01 $899,500 (0.1%) $1,340,998 (2.7%) 3.05 537
    2018-12-01 $895,000 (-0.4%) $1,352,935 (3.3%) 3.09 428
    2019-01-01 $898,000 (-0.2%) $1,396,503 (0.0%) 3.10 322
    2019-02-01 $899,000 (0.0%) $1,374,867 (-0.6%) 3.04 304
    2019-03-01 $940,143 (-3.6%) $1,398,082 (2.2%) 3.07 351
    2019-04-01 $988,143 (4.0%) $1,381,745 (-8.2%) 3.14 411
    2019-05-01 $999,250 (6.4%) $1,371,729 (-6.2%) 3.12 470
    2019-06-01 $998,000 (2.4%) $1,400,705 (-3.8%) 3.12 516
    2019-07-01 $957,500 (-0.7%) $1,358,860 (-3.4%) 3.00 585
    2019-08-01 $961,000 (3.3%) $1,356,164 (1.1%) 3.04 582
    2019-09-01 $954,250 (3.2%) $1,350,545 (2.2%) 3.05 569
    2019-10-01 $949,125 (5.8%) $1,346,800 (2.7%) 3.06 554
    2019-11-01 $949,500 (5.6%) $1,365,374 (1.8%) 3.11 467
    2019-12-01 $899,500 (0.5%) $1,392,669 (2.9%) 3.00 307
    2020-01-01 $906,750 (1.0%) $1,386,266 (-0.7%) 3.03 240
    2020-02-01 $929,000 (3.3%) $1,415,904 (3.0%) 3.04 265
    2020-03-01 $949,250 (1.0%) $1,383,291 (-1.1%) 2.97 328
    2020-04-01 $953,988 (-3.5%) $1,359,828 (-1.6%) 2.99 359
    2020-05-01 $966,500 (-3.3%) $1,401,533 (2.2%) 2.94 391
    2020-06-01 $1,049,500 (5.2%) $1,534,902 (9.6%) 3.09 380
    2020-07-01 $1,098,249 (14.7%) $1,558,220 (14.7%) 3.18 354
    2020-08-01 $1,100,000 (14.5%) $1,657,250 (22.2%) 3.15 314
    2020-09-01 $1,094,000 (14.7%) $1,609,034 (19.1%) 3.13 276
    2020-10-01 $1,076,000 (13.4%) $1,605,423 (19.2%) 3.08 273
    2020-11-01 $1,067,750 (12.5%) $1,471,183 (7.8%) 3.12 257
    2020-12-01 $985,975 (9.6%) $1,406,997 (1.0%) 2.93 219
    2021-01-01 $990,000 (9.2%) $1,394,226 (0.6%) 2.96 169
    2021-02-01 $949,500 (2.2%) $1,439,668 (1.7%) 2.76 151
    2021-03-01 $1,075,000 (13.3%) $1,504,810 (8.8%) 3.05 161
    2021-04-01 $1,149,250 (20.5%) $1,633,678 (20.1%) 3.11 187
    2021-05-01 $1,220,000 (26.2%) $1,753,714 (25.1%) 3.23 209
    2021-06-01 $1,235,000 (17.7%) $1,753,824 (14.3%) 3.25 218
    2021-07-01 $1,200,000 (9.3%) $1,701,709 (9.2%) 3.16 237
    2021-08-01 $1,174,500 (6.8%) $1,601,104 (-3.4%) 3.13 246
    2021-09-01 $1,200,000 (9.7%) $1,644,761 (2.2%) 3.20 224
    2021-10-01 $1,250,000 (16.2%) $1,723,102 (7.3%) 3.33 190
    2021-11-01 $1,349,250 (26.4%) $1,765,346 (20.0%) 3.60 154
    2021-12-01 $1,295,000 (31.3%) $1,693,453 (20.4%) 3.51 104
    2022-01-01 $1,231,250 (24.4%) $1,627,981 (16.8%) 3.33 86
    2022-02-01 $1,271,375 (33.9%) $1,617,802 (12.4%) 3.31 109
    2022-03-01 $1,298,738 (20.8%) $1,674,604 (11.3%) 3.25 139
    2022-04-01 $1,299,000 (13.0%) $1,704,955 (4.4%) 3.10 159
    2022-05-01 $1,398,750 (14.7%) $1,772,997 (1.1%) 3.20 237
    2022-06-01 $1,368,250 (10.8%) $1,766,245 (0.7%) 3.05 272
    2022-07-01 $1,349,000 (12.4%) $1,728,931 (1.6%) 3.05 328
    2022-08-01 $1,349,000 (14.9%) $1,697,692 (6.0%) 3.12 315
    2022-09-01 $1,386,000 (15.5%) $1,739,274 (5.8%) 3.24 288
    2022-10-01 $1,349,000 (7.9%) $1,724,220 (0.1%) 3.17 299
    2022-11-01 $1,399,000 (3.7%) $1,777,841 (0.7%) 3.37 268
    2022-12-01 $1,349,000 (4.2%) $1,719,354 (1.5%) 3.37 236
    Santa Cruz's median listing price for 2022-12-01 was $1,349,000, a difference of $54,000 (4.2%) versus the prior year and $-50,000 versus the prior month.

    Santa Cruz's median listing price comes in at 337% of the national average.

    Santa Cruz's average listing price for 2022-12-01 was $1,719,354, a difference of $25,901 (1.5%) versus the prior year and $-58,487 versus the prior month.

    For the 2022-12-01 period, Santa Cruz had 236 MLS listings, a difference of -32 listings (-12%) versus the prior month and 132 listings (127%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Santa Cruz (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 69 days 1,719 sqft
    2018-02-01 37 days 1,604 sqft
    2018-03-01 30 days 1,674 sqft
    2018-04-01 35 days 1,699 sqft
    2018-05-01 34 days 1,663 sqft
    2018-06-01 39 days 1,696 sqft
    2018-07-01 42 days 1,716 sqft
    2018-08-01 45 days 1,655 sqft
    2018-09-01 46 days 1,657 sqft
    2018-10-01 52 days 1,652 sqft
    2018-11-01 57 days 1,678 sqft
    2018-12-01 68 days 1,619 sqft
    2019-01-01 81 days 1,606 sqft
    2019-02-01 68 days 1,662 sqft
    2019-03-01 41 days 1,719 sqft
    2019-04-01 34 days 1,766 sqft
    2019-05-01 36 days 1,744 sqft
    2019-06-01 46 days 1,747 sqft
    2019-07-01 49 days 1,678 sqft
    2019-08-01 55 days 1,670 sqft
    2019-09-01 60 days 1,686 sqft
    2019-10-01 63 days 1,693 sqft
    2019-11-01 74 days 1,702 sqft
    2019-12-01 98 days 1,632 sqft
    2020-01-01 92 days 1,639 sqft
    2020-02-01 44 days 1,616 sqft
    2020-03-01 35 days 1,647 sqft
    2020-04-01 48 days 1,678 sqft
    2020-05-01 57 days 1,738 sqft
    2020-06-01 46 days 1,754 sqft
    2020-07-01 47 days 1,845 sqft
    2020-08-01 51 days 1,847 sqft
    2020-09-01 73 days 1,814 sqft
    2020-10-01 68 days 1,807 sqft
    2020-11-01 63 days 1,724 sqft
    2020-12-01 61 days 1,624 sqft
    2021-01-01 57 days 1,628 sqft
    2021-02-01 37 days 1,548 sqft
    2021-03-01 35 days 1,662 sqft
    2021-04-01 28 days 1,668 sqft
    2021-05-01 26 days 1,797 sqft
    2021-06-01 32 days 1,802 sqft
    2021-07-01 30 days 1,801 sqft
    2021-08-01 32 days 1,678 sqft
    2021-09-01 44 days 1,844 sqft
    2021-10-01 51 days 1,863 sqft
    2021-11-01 71 days 1,956 sqft
    2021-12-01 82 days 1,863 sqft
    2022-01-01 56 days 1,659 sqft
    2022-02-01 18 days 1,616 sqft
    2022-03-01 19 days 1,538 sqft
    2022-04-01 25 days 1,608 sqft
    2022-05-01 23 days 1,735 sqft
    2022-06-01 29 days 1,726 sqft
    2022-07-01 37 days 1,714 sqft
    2022-08-01 43 days 1,704 sqft
    2022-09-01 46 days 1,758 sqft
    2022-10-01 45 days 1,714 sqft
    2022-11-01 55 days 1,804 sqft
    2022-12-01 67 days 1,745 sqft
    Santa Cruz's median listing age (time on market) for 2022-12-01 was 67 days. This is -18% shorter than the same period one year ago.

    Santa Cruz's median square footage for active listings during the 2022-12-01 period was 1,745 sqft. One year prior, the average listing was 1,863 sqft.

    FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).