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 25 lenders originated 116 FHA loans during 2024. The total origination value was $87,550,000, with an average FHA loan value of $754,741.

    Santa Cruz FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Santa Cruz averaged 6.99% for the week of 2025-07-11, compared to the national average (all FHA variants) of 6.523% for the same period.

    Santa Cruz's average FHA mortgage closing costs are $16,494.

    The average rate for the prior week (2025-07-04) was 6.82% and one month ago for the week of 2025-06-06, the average rate was 6.75%.

    The average rate one year ago was 7.09%.

    For refis of the same type during the week of 2025-07-11, the average rate was 6.54%.

    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 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    CROSSCOUNTRY MORTGAGE, LLC 15 6.02% $22,990
    UNITED WHOLESALE MORTGAGE, LLC 12 5.87% $29,931
    QUICKEN LOANS, LLC 11 6.22% $18,527
    MASON MCDUFFIE MORTGAGE CORPORATION 4 6.56% $26,990
    MOUNTAIN WEST FINANCIAL, INC. 4 6.25% $21,565
    ML Mortgage Corp. 3 6.63% $24,041
    GUARANTEED RATE AFFINITY, LLC 2 6.37% $21,040
    PREMIER MORTGAGE RESOURCES, L.L.C. 2 6.44% $23,524
    GUILD MORTGAGE COMPANY 2 5.69% $18,691
    Paramount Residential Mortgage Group, Inc. 2 6.06% $16,719
    Mr. Cooper ( Nationstar Mortgage ) 1 5.50% $29,388
    NEWREZ LLC 1 5.75% $15,072
    OCMBC, INC. 1 5.25% $22,432
    PENNYMAC LOAN SERVICES, LLC 1 5.63% $26,746
    SUN WEST MORTGAGE COMPANY, INC. 1 6.25% $31,144
    LAKEVIEW LOAN SERVICING, LLC 1 5.75% $10,106
    Bank of America 1 6.50% $19,608
    BAY-VALLEY MORTGAGE GROUP 1 7.00% $33,839
    BROKER SOLUTIONS, INC. 1 5.75% $15,707
    Century Mortgage Company DBA Century Lending Company 1 7.13% $18,114
    Flagstar Bank, FSB 1 6.25% $16,930
    Home Mortgage Alliance Corp 1 5.63% $18,519
    HOMESIDE FINANCIAL, LLC 1 5.63% $26,267
    Lakeview Community Capital, LLC 1 6.25% $7,672
    AXIA FINANCIAL, LLC 1 7.25% $22,471

    The top Santa Cruz FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 15 FHA loans originated. Their average total fees are $22,990, which is $6,941 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

    The lowest fee Santa Cruz FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC ($18,527), CROSSCOUNTRY MORTGAGE, LLC ($22,990), UNITED WHOLESALE MORTGAGE, LLC ($29,931), .

    The lowest rate Santa Cruz FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC (5.87%), CROSSCOUNTRY MORTGAGE, LLC (6.02%), QUICKEN LOANS, LLC (6.22%), .

    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
    SANTA CRUZ-WATSONVILLE, CA SANTA CRUZ 2023 $1,089,300 $1,394,775 $1,685,850 $2,095,200

    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 (9.7%) 3.33 220
    2018-02-01 $899,250 (5.9%) $1,382,567 (7.2%) 3.26 246
    2018-03-01 $976,500 (10.1%) $1,367,781 (3.6%) 3.43 286
    2018-04-01 $950,000 (5.6%) $1,441,990 (7.9%) 3.22 337
    2018-05-01 $939,000 (4.5%) $1,412,309 (8.1%) 3.14 379
    2018-06-01 $971,000 (5.7%) $1,416,724 (9.1%) 3.24 421
    2018-07-01 $962,500 (4.1%) $1,371,001 (6.0%) 3.21 474
    2018-08-01 $929,006 (3.2%) $1,309,226 (4.1%) 3.11 525
    2018-09-01 $925,000 (2.8%) $1,290,292 (3.2%) 3.11 560
    2018-10-01 $897,000 (-0.2%) $1,281,559 (3.8%) 3.04 561
    2018-11-01 $899,500 (0.1%) $1,300,835 (-0.4%) 3.05 536
    2018-12-01 $895,000 (-0.4%) $1,307,537 (-0.2%) 3.09 428
    2019-01-01 $896,500 (-0.3%) $1,329,675 (-4.8%) 3.10 321
    2019-02-01 $899,000 (0.0%) $1,306,642 (-5.5%) 3.04 303
    2019-03-01 $940,121 (-3.7%) $1,342,249 (-1.9%) 3.07 350
    2019-04-01 $986,821 (3.9%) $1,341,204 (-7.0%) 3.13 410
    2019-05-01 $999,125 (6.4%) $1,336,669 (-5.4%) 3.12 469
    2019-06-01 $996,500 (2.6%) $1,372,995 (-3.1%) 3.11 514
    2019-07-01 $957,125 (-0.6%) $1,333,530 (-2.7%) 3.00 583
    2019-08-01 $960,818 (3.4%) $1,337,063 (2.1%) 3.04 580
    2019-09-01 $954,170 (3.2%) $1,341,141 (3.9%) 3.05 568
    2019-10-01 $949,000 (5.8%) $1,343,860 (4.9%) 3.06 553
    2019-11-01 $949,250 (5.5%) $1,363,268 (4.8%) 3.11 465
    2019-12-01 $899,250 (0.5%) $1,390,006 (6.3%) 3.00 305
    2020-01-01 $899,500 (0.3%) $1,383,186 (4.0%) 3.01 238
    2020-02-01 $925,000 (2.9%) $1,361,002 (4.2%) 3.03 262
    2020-03-01 $949,000 (0.9%) $1,337,346 (-0.4%) 2.97 325
    2020-04-01 $948,500 (-3.9%) $1,315,874 (-1.9%) 2.97 356
    2020-05-01 $959,500 (-4.0%) $1,356,750 (1.5%) 2.92 388
    2020-06-01 $1,018,250 (2.2%) $1,496,095 (9.0%) 3.00 377
    2020-07-01 $1,094,000 (14.3%) $1,518,079 (13.8%) 3.17 351
    2020-08-01 $1,100,000 (14.5%) $1,617,445 (21.0%) 3.15 311
    2020-09-01 $1,088,250 (14.1%) $1,558,731 (16.2%) 3.12 273
    2020-10-01 $1,072,500 (13.0%) $1,556,863 (15.9%) 3.07 270
    2020-11-01 $1,042,222 (9.8%) $1,469,102 (7.8%) 3.05 255
    2020-12-01 $972,919 (8.2%) $1,403,710 (1.0%) 2.89 217
    2021-01-01 $950,000 (5.6%) $1,390,225 (0.5%) 2.84 167
    2021-02-01 $944,500 (2.1%) $1,435,531 (5.5%) 2.75 149
    2021-03-01 $1,074,750 (13.3%) $1,501,887 (12.3%) 3.05 159
    2021-04-01 $1,134,250 (19.6%) $1,632,051 (24.0%) 3.07 185
    2021-05-01 $1,199,500 (25.0%) $1,698,025 (25.2%) 3.19 206
    2021-06-01 $1,231,000 (20.9%) $1,695,900 (13.4%) 3.24 215
    2021-07-01 $1,200,000 (9.7%) $1,647,008 (8.5%) 3.17 234
    2021-08-01 $1,172,250 (6.6%) $1,548,492 (-4.3%) 3.13 243
    2021-09-01 $1,200,000 (10.3%) $1,586,279 (1.8%) 3.20 221
    2021-10-01 $1,250,000 (16.6%) $1,669,649 (7.2%) 3.33 187
    2021-11-01 $1,348,250 (29.4%) $1,698,584 (15.6%) 3.60 151
    2021-12-01 $1,283,750 (32.0%) $1,587,594 (13.1%) 3.48 101
    2022-01-01 $1,200,000 (26.3%) $1,498,415 (7.8%) 3.24 83
    2022-02-01 $1,249,500 (32.3%) $1,498,586 (4.4%) 3.25 106
    2022-03-01 $1,297,750 (20.8%) $1,587,953 (5.7%) 3.25 136
    2022-04-01 $1,299,000 (14.5%) $1,634,705 (0.2%) 3.10 156
    2022-05-01 $1,397,500 (16.5%) $1,724,447 (1.6%) 3.19 234
    2022-06-01 $1,363,500 (10.8%) $1,722,783 (1.6%) 3.04 269
    2022-07-01 $1,332,000 (11.0%) $1,692,267 (2.8%) 3.00 325
    2022-08-01 $1,344,500 (14.7%) $1,660,443 (7.2%) 3.11 312
    2022-09-01 $1,386,000 (15.5%) $1,720,097 (8.4%) 3.24 286
    2022-10-01 $1,349,000 (7.9%) $1,723,678 (3.2%) 3.17 297
    2022-11-01 $1,399,000 (3.8%) $1,777,598 (4.7%) 3.36 266
    2022-12-01 $1,345,000 (4.8%) $1,715,599 (8.1%) 3.32 232
    2023-01-01 $1,285,750 (7.2%) $1,643,300 (9.7%) 3.18 171
    2023-02-01 $1,316,250 (5.3%) $1,659,280 (10.7%) 3.18 176
    2023-03-01 $1,397,000 (7.7%) $1,790,272 (12.7%) 3.29 173
    2023-04-01 $1,399,000 (7.7%) $1,856,567 (13.6%) 3.25 204
    2023-05-01 $1,432,000 (2.5%) $1,810,164 (5.0%) 3.25 243
    2023-06-01 $1,387,000 (1.7%) $1,748,746 (1.5%) 3.12 280
    2023-07-01 $1,375,000 (3.2%) $1,764,170 (4.3%) 3.13 297
    2023-08-01 $1,298,000 (-3.5%) $1,717,326 (3.4%) 2.98 312
    2023-09-01 $1,250,000 (-9.8%) $1,723,492 (0.2%) 2.91 319
    2023-10-01 $1,197,000 (-11.3%) $1,695,612 (-1.6%) 2.82 332
    2023-11-01 $1,174,857 (-16.0%) $1,674,739 (-5.8%) 2.80 311
    2023-12-01 $1,182,000 (-12.1%) $1,611,871 (-6.1%) 2.88 248
    2024-01-01 $1,062,000 (-17.4%) $1,536,203 (-6.5%) 2.59 200
    2024-02-01 $1,074,850 (-18.3%) $1,597,220 (-3.7%) 2.59 193
    2024-03-01 $1,199,000 (-14.2%) $1,709,344 (-4.5%) 2.82 225
    2024-04-01 $1,298,000 (-7.2%) $1,841,445 (-0.8%) 3.02 270
    2024-05-01 $1,299,000 (-9.3%) $1,906,698 (5.3%) 2.96 344
    2024-06-01 $1,296,500 (-6.5%) $1,898,389 (8.6%) 2.95 375
    2024-07-01 $1,295,750 (-5.8%) $1,803,485 (2.2%) 2.96 395
    2024-08-01 $1,277,000 (-1.6%) $1,795,602 (4.6%) 2.97 432
    2024-09-01 $1,274,750 (2.0%) $1,767,265 (2.5%) 3.00 449
    2024-10-01 $1,295,000 (8.2%) $1,745,854 (3.0%) 3.05 442
    2024-11-01 $1,249,000 (6.3%) $1,698,702 (1.4%) 3.00 425
    2024-12-01 $1,182,500 (0.0%) $1,639,745 (1.7%) 2.94 324
    2025-01-01 $1,158,875 (9.1%) $1,610,167 (4.8%) 2.89 290
    2025-02-01 $1,194,500 (11.1%) $1,678,991 (5.1%) 2.90 311
    2025-03-01 $1,200,000 (0.1%) $1,714,706 (0.3%) 2.82 376
    2025-04-01 $1,249,000 (-3.8%) $1,724,809 (-6.3%) 2.90 455
    2025-05-01 $1,299,000 (0.0%) $1,735,076 (-9.0%) 2.95 550
    2025-06-01 $1,297,000 (0.0%) $1,741,005 (-8.3%) 2.94 606
    Santa Cruz's median listing price for 2025-06-01 was $1,297,000, a difference of $500 (0.0%) versus the prior year and $-2,000 versus the prior month.

    Santa Cruz's median listing price comes in at 294% of the national average.

    Santa Cruz's average listing price for 2025-06-01 was $1,741,005, a difference of $-157,384 (-8.3%) versus the prior year and $5,929 versus the prior month.

    For the 2025-06-01 period, Santa Cruz had 606 MLS listings, a difference of 56 listings (10%) versus the prior month and 231 listings (62%) 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 67 days 1,719 sqft
    2018-02-01 36 days 1,608 sqft
    2018-03-01 30 days 1,677 sqft
    2018-04-01 35 days 1,699 sqft
    2018-05-01 33 days 1,663 sqft
    2018-06-01 39 days 1,693 sqft
    2018-07-01 42 days 1,716 sqft
    2018-08-01 43 days 1,655 sqft
    2018-09-01 46 days 1,657 sqft
    2018-10-01 52 days 1,650 sqft
    2018-11-01 56 days 1,673 sqft
    2018-12-01 67 days 1,614 sqft
    2019-01-01 81 days 1,605 sqft
    2019-02-01 66 days 1,661 sqft
    2019-03-01 41 days 1,716 sqft
    2019-04-01 33 days 1,762 sqft
    2019-05-01 36 days 1,736 sqft
    2019-06-01 46 days 1,744 sqft
    2019-07-01 47 days 1,677 sqft
    2019-08-01 53 days 1,669 sqft
    2019-09-01 58 days 1,684 sqft
    2019-10-01 61 days 1,691 sqft
    2019-11-01 69 days 1,700 sqft
    2019-12-01 95 days 1,625 sqft
    2020-01-01 90 days 1,636 sqft
    2020-02-01 39 days 1,610 sqft
    2020-03-01 34 days 1,634 sqft
    2020-04-01 47 days 1,672 sqft
    2020-05-01 53 days 1,725 sqft
    2020-06-01 44 days 1,740 sqft
    2020-07-01 45 days 1,842 sqft
    2020-08-01 48 days 1,842 sqft
    2020-09-01 66 days 1,799 sqft
    2020-10-01 62 days 1,795 sqft
    2020-11-01 57 days 1,722 sqft
    2020-12-01 59 days 1,617 sqft
    2021-01-01 54 days 1,618 sqft
    2021-02-01 35 days 1,538 sqft
    2021-03-01 33 days 1,636 sqft
    2021-04-01 27 days 1,654 sqft
    2021-05-01 25 days 1,792 sqft
    2021-06-01 31 days 1,798 sqft
    2021-07-01 29 days 1,792 sqft
    2021-08-01 31 days 1,665 sqft
    2021-09-01 42 days 1,827 sqft
    2021-10-01 49 days 1,851 sqft
    2021-11-01 64 days 1,952 sqft
    2021-12-01 74 days 1,833 sqft
    2022-01-01 52 days 1,646 sqft
    2022-02-01 17 days 1,574 sqft
    2022-03-01 18 days 1,535 sqft
    2022-04-01 24 days 1,600 sqft
    2022-05-01 23 days 1,712 sqft
    2022-06-01 28 days 1,723 sqft
    2022-07-01 36 days 1,705 sqft
    2022-08-01 41 days 1,700 sqft
    2022-09-01 45 days 1,738 sqft
    2022-10-01 44 days 1,705 sqft
    2022-11-01 54 days 1,796 sqft
    2022-12-01 66 days 1,723 sqft
    2023-01-01 78 days 1,703 sqft
    2023-02-01 61 days 1,691 sqft
    2023-03-01 38 days 1,723 sqft
    2023-04-01 36 days 1,786 sqft
    2023-05-01 32 days 1,753 sqft
    2023-06-01 32 days 1,754 sqft
    2023-07-01 36 days 1,696 sqft
    2023-08-01 40 days 1,587 sqft
    2023-09-01 39 days 1,600 sqft
    2023-10-01 43 days 1,531 sqft
    2023-11-01 48 days 1,516 sqft
    2023-12-01 60 days 1,438 sqft
    2024-01-01 68 days 1,351 sqft
    2024-02-01 49 days 1,387 sqft
    2024-03-01 36 days 1,428 sqft
    2024-04-01 33 days 1,553 sqft
    2024-05-01 32 days 1,606 sqft
    2024-06-01 36 days 1,596 sqft
    2024-07-01 45 days 1,601 sqft
    2024-08-01 44 days 1,609 sqft
    2024-09-01 47 days 1,585 sqft
    2024-10-01 51 days 1,578 sqft
    2024-11-01 53 days 1,550 sqft
    2024-12-01 70 days 1,509 sqft
    2025-01-01 73 days 1,502 sqft
    2025-02-01 41 days 1,462 sqft
    2025-03-01 36 days 1,514 sqft
    2025-04-01 36 days 1,569 sqft
    2025-05-01 38 days 1,611 sqft
    2025-06-01 45 days 1,661 sqft
    Santa Cruz's median listing age (time on market) for 2025-06-01 was 45 days. This is 24% longer than the same period one year ago.

    Santa Cruz's median square footage for active listings during the 2025-06-01 period was 1,661 sqft. One year prior, the average listing was 1,596 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).