Question 1

Can I use FHA for a horse property in Norco?

Accepted Answer

Yes, if the property stays under $644,000 and meets FHA safety standards. Most equestrian homes qualify, but barns and outbuildings must pass inspection.

Question 2

When does PMI drop off a conventional loan?

Accepted Answer

Automatically at 78% loan-to-value based on original amortization schedule. You can request cancellation at 80% LTV with an appraisal showing sufficient equity.

Question 3

What credit score do I need for each loan type?

Accepted Answer

FHA accepts 580 minimum with 3.5% down. Conventional requires 620 minimum, but rates improve significantly at 680+ and 740+.

Question 4

Does FHA mortgage insurance ever go away?

Accepted Answer

Only if you put down 10% or more at purchase. With less than 10% down, MIP stays for the loan's entire term.

Question 5

Which loan works better for Norco's older homes?

Accepted Answer

Both work. FHA has stricter safety requirements, but most properties pass. Conventional appraisals focus more on value than condition.

Question 6

Can I switch from FHA to conventional later?

Accepted Answer

Yes, through refinancing once you hit 620+ credit and 20% equity. This eliminates lifetime mortgage insurance and typically lowers your rate.

Conventional vs FHA Loans in Norco: Which Path Gets You Into Horse Property?