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Paradise is rebuilding. That changes what lenders look at when underwriting here.
Conventional loans are private — no FHA, no VA backing. Lenders carry the full risk, so they scrutinize Paradise properties closely after the 2018 Camp Fire.
620
Min Credit Score
20%
Down Payment (No PMI)
6.57% (Apr 2026)
30-Yr Fixed (National)
Yes — before closing
Insurance Required
Conventional Loans in Paradise
Most conventional lenders want a 620 credit score minimum. To avoid private mortgage insurance (PMI), you need 20% down.
PMI is a monthly fee protecting the lender — not you. Put less than 20% down and you'll pay it until you hit 20% equity.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Paradise.
Paradise is rebuilding. That changes what lenders look at when underwriting here.
Conventional loans are private — no FHA, no VA backing. Lenders carry the full risk, so they scrutinize Paradise properties closely after the 2018 Camp Fire.
Most conventional lenders want a 620 credit score minimum. To avoid private mortgage insurance (PMI), you need 20% down.
Not every lender will touch Paradise. Some wholesale lenders flag Butte County as a higher-risk zone due to wildfire history.
Working with a broker matters here. We have access to 200+ wholesale lenders and know which ones are actively approving Paradise properties right now.
HousingWire flagged that the 30-year fixed hit 6.57%, pushing applications down 10.4%. ARM demand is rising as buyers look for lower entry rates.
On a rebuild or new construction in Paradise, a conventional ARM can make sense — especially if you plan to refinance once the property seasons. Rates vary by borrower profile and market conditions.
FHA loans allow lower credit scores and smaller down payments. But FHA has strict property condition rules — tough for Paradise fixer-uppers or partial rebuilds.
Conventional beats FHA once your score is above 700 and you have 10–20% down. You get lower total costs and no upfront mortgage insurance premium.
Homeowners insurance is the biggest obstacle in Paradise right now. Many carriers left the area. Lenders require active coverage before closing.
If you can't secure insurance, you can't close — regardless of loan type. Get your insurance quote early. It's the variable that kills deals here.
Yes, if the rebuild meets lender standards and you have active homeowners insurance. Some lenders require the property to be fully complete at closing.
Most lenders require at least 620. A score above 740 gets you the best pricing and avoids most lender overlays.
Lenders may decline due to fire zone risk, insurance gaps, or incomplete construction. Not every lender operates in high-wildfire-risk areas.
It depends on your timeline. If you expect to refinance within 5–7 years, an ARM could lower your initial payment. Rates vary by borrower profile and market conditions.
PMI is a monthly fee added when you put less than 20% down. It drops off once your loan balance reaches 80% of the home's value.
Lenders will order a standard appraisal, but appraisers need local comps. New construction in Paradise can be harder to appraise due to limited sales data.