Question 1

Can I use either loan for a fixer-upper in Sutter Creek?

Accepted Answer

FHA has stricter property condition rules. A home needing major repairs may fail FHA appraisal. Conventional is more flexible on condition.

Question 2

Which loan has lower monthly payments?

Accepted Answer

It depends on your down payment and credit score. Conventional wins for strong borrowers — no lifetime mortgage insurance drags down your payment.

Question 3

Does FHA require a larger down payment with lower credit?

Accepted Answer

Yes. Below 580, FHA requires 10% down. At 580 or above, 3.5% down is the minimum. Rates vary by borrower profile and market conditions.

Question 4

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

Not easily. FHA MIP stays for the loan's life if you put less than 10% down. You'd need to refinance into conventional to remove it.

Question 5

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require at least 620. The best rates go to borrowers above 740. Rates vary by borrower profile and market conditions.

Question 6

Which loan is faster to close in Amador County?

Accepted Answer

Conventional loans often close faster. FHA appraisals add time and can require repair conditions before closing is allowed.

Conventional vs FHA Loans in Sutter Creek, CA