Question 1

Can I use either loan for a fixer-upper in Nevada City?

Accepted Answer

FHA has a 203k rehab option built in. Conventional renovation loans exist but are harder to qualify for.

Question 2

Which loan has a higher purchase limit in Nevada County?

Accepted Answer

Both conventional and FHA limits are set by county. Check current conforming limits — Nevada County is not a high-cost exception.

Question 3

Does FHA require a home inspection?

Accepted Answer

FHA requires an appraisal that meets HUD property standards. A separate inspection is always smart but not technically required.

Question 4

Can I remove FHA mortgage insurance later?

Accepted Answer

On loans with less than 10% down, FHA MIP stays for the life of the loan. Refinancing into conventional is the main exit.

Question 5

What credit score do I need for the best conventional rate?

Accepted Answer

Lenders tier rates by score. A 740 or above typically gets you the sharpest pricing. Rates vary by borrower profile and market conditions.

Question 6

Is one loan faster to close than the other?

Accepted Answer

Both can close in 30 days with clean files. FHA appraisals can add time if the property has condition issues.

Conventional vs FHA Loans in Nevada City, CA