Question 1

Which loan has a lower down payment in Ukiah?

Accepted Answer

FHA requires 3.5% down with a 580+ credit score. Conventional can go as low as 3% but typically requires stronger credit.

Question 2

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

On most FHA loans, MIP stays for the life of the loan. Refinancing into a conventional loan is the main way to remove it.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Most conventional lenders require a 620 minimum. Better rates kick in significantly above 700.

Question 4

Are FHA rates lower than conventional rates in Ukiah?

Accepted Answer

FHA rates are often slightly lower, but MIP adds to your total cost. Rates vary by borrower profile and market conditions.

Question 5

Which loan is better for a first-time buyer?

Accepted Answer

FHA works well for buyers with limited savings or bruised credit. Conventional is better if your finances are solid.

Question 6

Do loan limits differ between FHA and conventional in Mendocino County?

Accepted Answer

Yes. Both programs set county-level limits annually. Check current limits before assuming a purchase price is covered.

Conventional vs FHA Loans in Ukiah, CA