Question 1

Can I use an FHA loan for a South Lake Tahoe vacation home?

Accepted Answer

No. FHA loans require owner occupancy as your primary residence. Vacation homes and rentals need conventional financing.

Question 2

Does FHA mortgage insurance ever go away?

Accepted Answer

Not on 30-year loans with less than 10% down — it lasts the life of the loan. Refinancing to conventional later is the only exit.

Question 3

What credit score do I need for each loan?

Accepted Answer

Conventional requires 620 minimum. FHA allows 580 for 3.5% down, or 500 with 10% down.

Question 4

Which loan has higher limits in El Dorado County?

Accepted Answer

El Dorado County is a high-cost area, so both programs carry elevated limits. Conventional limits typically run higher than FHA limits.

Question 5

Can I refinance from FHA to conventional later?

Accepted Answer

Yes — and many Tahoe buyers do exactly that once they build equity. It removes the permanent FHA mortgage insurance.

Conventional vs FHA Loans in South Lake Tahoe