Question 1

Can I use an FHA loan to buy a cabin in Graeagle?

Accepted Answer

Only if it's your full-time primary residence. FHA does not allow vacation or second home purchases.

Question 2

Does conventional or FHA have lower mortgage insurance?

Accepted Answer

Conventional PMI cancels once you hit 20% equity. FHA MIP typically stays for the life of the loan.

Question 3

What credit score do I need for each loan?

Accepted Answer

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

Question 4

Which loan works better for rural properties?

Accepted Answer

Conventional is more flexible. FHA has property condition requirements that some older cabins may not meet.

Question 5

Can I put less than 5% down on a conventional loan?

Accepted Answer

Yes — 3% down is available for primary residences through Fannie Mae and Freddie Mac programs.

Conventional vs FHA Loans in Graeagle, CA