Santa Cruz FHA Loan Rates, Closing Costs & Stats

SANTA CRUZ-WATSONVILLE, CA

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).