Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes — refinancing into conventional removes FHA mortgage insurance once you have enough equity. You'll need to qualify at current rates when you do.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down. Conventional lenders typically require 620 minimum, but better pricing starts at 700.

Question 3

Does FHA work on rural Willits properties?

Accepted Answer

FHA can work in rural areas, but the appraisal standards are stricter. Properties with significant deferred maintenance often fail FHA inspection.

Question 4

Which loan has lower monthly payments?

Accepted Answer

It depends on your credit and down payment. Conventional wins for strong-credit buyers. FHA can be cheaper for lower-score borrowers despite the MIP.

Question 5

Are FHA loan limits high enough for Mendocino County?

Accepted Answer

FHA sets county-level loan limits. Confirm the current Mendocino County limit before assuming FHA covers your purchase price.

Conventional vs FHA Loans in Willits, CA