Question 1

What credit score do I need for a conventional loan in Chico?

Accepted Answer

Minimum is 620, but 700+ gets you meaningfully better pricing. Most Chico buyers we work with target 720 to avoid rate add-ons.

Question 2

Can I buy in a Camp Fire rebuild area with a conventional loan?

Accepted Answer

Yes, but insurance is the hurdle. Lenders require hazard coverage, and some Butte County areas are hard to insure. Solve insurance first.

Question 3

How much do I need to put down for a conventional loan?

Accepted Answer

As little as 3% for a primary home. Put down 20% and you skip PMI entirely — that saves real money each month.

Question 4

Does conventional or FHA work better for Chico buyers?

Accepted Answer

Conventional wins if your score is 680+. FHA makes sense below that or if you need more flexible debt ratios.

Question 5

Will I hit the jumbo loan threshold buying in Chico?

Accepted Answer

Unlikely for most Chico purchases. Butte County's conforming limit covers the majority of homes sold here.

Question 6

How do I get rid of PMI on a conventional loan?

Accepted Answer

Once your loan balance drops to 80% of the home's value, you can request cancellation. It's automatic at 78% under federal law.

Conventional Loans in Chico, CA — Flexible Financing for Qualified Buyers