Question 1

Which loan has a lower down payment in Susanville?

Accepted Answer

FHA requires just 3.5% down with a 580 score. Conventional can go as low as 3%, but only for very strong credit profiles.

Question 2

Can I drop mortgage insurance on an FHA loan?

Accepted Answer

Not easily. FHA mortgage insurance stays for the life of the loan if you put down less than 10%. Refinancing to conventional later is the usual exit.

Question 3

What credit score do I need for each loan?

Accepted Answer

FHA accepts 580 with 3.5% down. Conventional requires 620 minimum, but you want 740+ for the best rate.

Question 4

Are FHA loan limits an issue in Lassen County?

Accepted Answer

FHA limits in Lassen County cap how much you can borrow. If the home price pushes past that cap, conventional is your only conforming option.

Question 5

Which loan is better after a past bankruptcy or foreclosure?

Accepted Answer

FHA has shorter mandatory waiting periods after major credit events. That makes it the faster path back to qualifying after financial hardship.

Question 6

Does property condition affect which loan I can use?

Accepted Answer

Yes. FHA has strict property condition standards — the home must meet HUD guidelines. Conventional appraisals are less restrictive on condition.

Conventional vs FHA Loans in Susanville, CA