2025 VA guidelines · Based on local median home value · Pre-rendered committed figures
VA loans carry no monthly mortgage insurance in Santa Cruz — zero, regardless of down payment or LTV. A comparable conventional buyer with 5% down on a median $1,355,635 home in Santa Cruz would pay approximately $768/month in PMI until reaching 20% equity. VA borrowers avoid this cost entirely, permanently.
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
| Disabled veteran / surviving spouse / Purple Heart | 0% (waived) | 0% (waived) |
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Loan balance and total interest paid over 30 years.
For a first-time VA loan use in Santa Cruz, CA with 0% down on a median $1,355,635 home, the VA funding fee is 2.15% of the loan amount — equal to $29,146. This fee is typically financed into the loan rather than paid at closing. The funding fee is waived for veterans with a service-connected disability rating of 10% or greater, surviving spouses of veterans who died in service or from a service-connected disability, and Purple Heart recipients.
VA loans carry no monthly mortgage insurance — zero. This is the primary cost advantage over FHA and conventional loans with less than 20% down. In Santa Cruz, CA, a comparable conventional buyer putting 5% down on a median $1,355,635 home would pay approximately $768/month in PMI until reaching 20% equity. VA borrowers avoid this cost entirely for the life of the loan, regardless of LTV.
VA funding fee rates depend on down payment size and whether it is a first or subsequent VA loan use. For first-time use: 0–5% down = 2.15%, 5–10% down = 1.50%, 10% or more down = 1.25%. For subsequent use: 0–5% down = 3.30%, 5–10% down = 1.50%, 10% or more down = 1.25%. The fee is completely waived for veterans with a service-connected disability rating of 10% or greater, surviving spouses, and Purple Heart recipients. For a $1,355,635 home in Santa Cruz, CA, the 2.15% first-use fee equals $29,146.
VA buyers in Santa Cruz, CA have no monthly mortgage insurance, but still owe property taxes, homeowners insurance, and utilities. For a median $1,355,635 home: approximately $7,122/yr in property taxes, $1,040/yr for homeowners insurance, and $2,400/yr in energy utilities — adding approximately $880/month to P&I. The VA funding fee of $29,146 is paid once (usually financed) rather than monthly.