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 0.07% for the week of 2025-07-04, compared to the national average (all FHA variants) of 0% for the same period.

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

    The average rate for the prior week (2025-06-27) was 6.75% and one month ago for the week of 2025-05-30, the average rate was 6.62%.

    The average rate one year ago was 6.85%.

    For refis of the same type during the week of 2025-07-04, the average rate was 0.02%.

    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

    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).