Question 1

What is the minimum credit score for each loan?

Accepted Answer

Conventional requires 620. FHA allows 580 with 3.5% down, or 500 with 10% down.

Question 2

Can I avoid mortgage insurance on either loan?

Accepted Answer

Yes — put 20% down on a conventional loan and you skip PMI entirely. FHA MIP is almost always required.

Question 3

Do FHA loan limits cover St. Helena home prices?

Accepted Answer

Napa County has elevated FHA limits, but St. Helena prices can run high. Verify the limit before assuming FHA will cover your purchase price.

Question 4

Which loan has a lower down payment?

Accepted Answer

FHA starts at 3.5% down with a 580 score. Conventional can go as low as 3%, but that requires strong credit.

Question 5

Is FHA harder to get approved for in competitive markets?

Accepted Answer

Some sellers prefer conventional offers. FHA appraisal requirements can complicate deals on older or distressed properties.

Question 6

How do current rates affect which loan I should choose?

Accepted Answer

Higher rates amplify the cost of FHA's MIP. At elevated rate levels, conventional's lower insurance cost becomes more valuable.

Conventional vs FHA Loans in St. Helena, CA