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in Truckee, CA
Truckee's mountain real estate market demands a financing strategy that matches your situation. Most buyers here choose between conventional loans and FHA financing.
Both work for primary homes and vacation properties, but they differ sharply on down payment, mortgage insurance, and approval standards. Your choice affects your upfront costs and monthly payment for years.
Conventional loans require no government insurance and typically need 3-5% down for a primary home. You'll need a 620 credit score minimum, though stronger profiles unlock better rates.
PMI drops off automatically once you hit 78% loan-to-value through payments or appreciation. For second homes and investment properties in Truckee, conventional is often your only option under $766,550.
These loans cap at $766,550 in Nevada County for 2024. Anything above that requires a jumbo loan with stricter requirements and higher rates.
FHA loans accept 3.5% down with a 580 credit score. Scores between 500-579 require 10% down, but most lenders set their own 580 floor anyway.
You'll pay two types of mortgage insurance: 1.75% upfront and 0.55% annually. That annual premium stays for the loan's life if you put down less than 10%. It never drops off through refinance or sale only.
FHA limits in Nevada County match conventional at $498,257 for 2024. Primary residences only—no second homes or investment properties qualify.
Credit score separates these loans most. Conventional demands 620 minimum; FHA accepts 580. But that flexibility costs you—FHA's mortgage insurance is pricier and lasts longer.
Down payment looks similar at first—both allow 3-5% down. The real gap shows up in mortgage insurance. Conventional PMI drops off. FHA insurance doesn't unless you put 10% down and wait 11 years.
Property type matters in Truckee's market. Buying a ski condo as a second home? You need conventional. FHA only finances primary residences, which limits options in a vacation-heavy area.
Choose FHA if your credit sits between 580-680 and you're buying a primary home. The lower credit threshold and forgiving debt ratios get more deals approved. Just factor in higher monthly costs from permanent mortgage insurance.
Go conventional if you have 620+ credit or you're buying a vacation property. You'll save thousands over time as PMI drops off. Stronger credit scores also unlock rate discounts FHA can't match.
For Truckee buyers stretching toward higher price points, conventional's $766,550 limit beats FHA's $498,257 cap. That extra $268,293 in lending power opens up more inventory in this mountain market.
No. FHA requires primary residence occupancy. Vacation homes and investment properties need conventional financing.
Conventional typically costs less monthly once you factor in mortgage insurance. FHA's permanent insurance adds $229/month per $100k borrowed.
FHA approves 580+ credit scores. Conventional requires 620 minimum, though 680+ unlocks better pricing from most lenders.
Yes, through refinancing. Most borrowers refinance out of FHA once they hit 20% equity to drop mortgage insurance permanently.
Both take 30-45 days typically. Conventional may move slightly faster since FHA requires additional property inspections and appraisal reviews.