Question 1

Which loan has a lower down payment?

Accepted Answer

FHA allows 3.5% down with a 580 score. Conventional goes as low as 3% but requires stronger credit.

Question 2

Can I remove mortgage insurance on an FHA loan?

Accepted Answer

Not easily. Most FHA loans keep MIP for the loan's life. Refinancing to conventional is the typical exit.

Question 3

Does FHA work on older Clearlake homes?

Accepted Answer

It depends on condition. FHA appraisers flag safety and structural issues. Fixer-uppers often fail without seller repairs.

Question 4

Which loan has lower interest rates?

Accepted Answer

FHA rates are often slightly lower, but MIP offsets that. Rates vary by borrower profile and market conditions.

Question 5

What credit score gets the best conventional rate?

Accepted Answer

740 and above puts you in the best pricing tier. Below 680, conventional rates climb and FHA starts looking better.

Conventional vs FHA Loans in Clearlake, CA