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in Mammoth Lakes, CA
Mammoth Lakes draws buyers seeking mountain retreats, investment properties, and vacation homes. Conventional and FHA loans serve different needs in this resort market.
Your down payment capacity and property type determine which path makes sense. Second homes and investment properties limit FHA eligibility, while conventional loans handle all use cases.
Conventional loans work for primary homes, second homes, and investment properties in Mammoth Lakes. You need 620+ credit for most programs, though stronger profiles unlock better rates.
Down payments start at 3% for primary homes and 10% for second homes. Investment properties require 15-25% down depending on credit and reserves.
You avoid mortgage insurance once you hit 20% equity. This matters when appreciation builds equity faster than principal paydown in resort markets.
FHA loans require just 3.5% down with 580+ credit, or 10% down with 500-579 credit. The mortgage insurance premium costs 1.75% upfront plus 0.55-0.85% annually.
You must occupy the property as your primary residence. Second homes and investment properties don't qualify, which eliminates most Mammoth buyers from FHA eligibility.
The annual mortgage insurance stays for the loan's life on purchases with less than 10% down. Refinancing is the only way to remove it once rates make sense.
Property use splits these options cleanly. FHA serves primary residence buyers only, while conventional handles second homes and investment properties that dominate Mammoth sales.
Mortgage insurance structures diverge significantly. Conventional PMI cancels at 20% equity, but FHA's annual premium persists for the loan term unless you put 10%+ down.
Credit requirements favor FHA for scores between 580-680. Above 680, conventional loans often cost less due to better mortgage insurance rates and removal options.
Choose FHA if you're relocating to Mammoth Lakes full-time with 580+ credit and limited down payment funds. The lower barrier to entry offsets the lifetime mortgage insurance cost.
Pick conventional for second homes, vacation properties, or investment purchases. The property use flexibility alone makes it the only viable option for most Mammoth buyers.
Conventional also wins for primary residence buyers with 680+ credit and 5%+ down payment. You'll pay less in mortgage insurance and eliminate it entirely at 20% equity through appreciation or paydown.
No, FHA requires primary residence occupancy. Vacation homes and second properties must use conventional financing regardless of down payment size.
Both allow condos if the complex is approved. Conventional has more approved projects, and FHA adds condo certification requirements that some HOAs skip.
It covers many properties, but premium locations exceed conforming limits. You'll need jumbo financing for purchases above that threshold with either loan type.
FHA charges 1.75% upfront plus 0.55-0.85% annually for the loan's life. Conventional PMI ranges 0.3-1.5% annually and cancels at 20% equity.
You'd need to refinance into a conventional loan once you hit 20% equity. This makes sense when rates are similar or lower than your original FHA rate.