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in Susanville, CA
Most Susanville buyers choose between conventional and FHA loans. Both work well for rural properties, but requirements differ sharply.
FHA allows lower credit scores and smaller down payments. Conventional loans drop mortgage insurance faster and cost less long-term.
Conventional loans require 620 credit minimum and typically 5% down for most buyers. You can put as little as 3% down with strong credit and stable income.
PMI drops automatically once you reach 78% loan-to-value through payments or appreciation. Lenders also allow higher debt ratios for borrowers with reserves and strong credit.
FHA loans accept 580 credit scores with 3.5% down. You can qualify with 500-579 credit if you put 10% down.
FHA charges upfront mortgage insurance (1.75% of loan amount) plus annual premiums for the loan's life on most purchases. This makes FHA more expensive over time despite easier approval.
Credit score matters most here. FHA accepts 580 while conventional needs 620 minimum. But that 40-point gap costs you—FHA mortgage insurance runs $150-200 monthly on a $300K loan and never drops off.
Conventional PMI disappears once you hit 78% LTV. On FHA, you pay mortgage insurance for 11 years minimum or the full loan term depending on down payment. That's $20K-50K extra over a typical loan.
Choose FHA if your credit sits below 620 or you need lenient underwriting. It gets you approved when conventional won't. Just plan to refinance once your credit improves to drop that permanent mortgage insurance.
Go conventional if you have 620+ credit. You'll save thousands in mortgage insurance and get better rates. Even with 5% down, conventional beats FHA after year three in most cases.
Yes, FHA works throughout Lassen County including rural areas. Property just needs to meet basic safety standards and pass FHA appraisal.
Expect $4,375 upfront (added to loan) plus $146 monthly with 3.5% down. That monthly cost never drops off unless you refinance.
Automatically at 78% loan-to-value through scheduled payments. You can request removal at 80% LTV with an appraisal.
Conventional typically beats FHA by 0.125-0.25% with good credit. Rates vary by borrower profile and market conditions.
Yes, refinance once you hit 620+ credit and 5% equity. This drops FHA mortgage insurance and often lowers your rate.