Question 1

Can I use an FHA loan for a vacation home in Big Bear Lake?

Accepted Answer

No. FHA requires the home to be your primary residence. Vacation and second home purchases don't qualify.

Question 2

Does FHA mortgage insurance ever go away?

Accepted Answer

On most FHA loans, annual MIP lasts the life of the loan. Conventional PMI cancels once you reach 20% equity.

Question 3

Which loan has a lower down payment?

Accepted Answer

FHA allows 3.5% down at 580+ credit. Conventional can go as low as 3% but requires stronger credit and income.

Question 4

Are FHA loan limits high enough for Big Bear Lake home prices?

Accepted Answer

San Bernardino County FHA limits apply here. If the purchase price exceeds that cap, you'll need conventional financing.

Question 5

Which loan is better for a buyer with a 700 credit score?

Accepted Answer

At 700, you qualify for conventional. The lower long-term cost — no permanent MIP — usually makes conventional the smarter pick.

Conventional vs FHA Loans in Big Bear Lake