Question 1

Can I get an FHA loan on a condo in Goleta?

Accepted Answer

Only FHA-approved condo projects qualify. Check the HUD approval list before making an offer — many Santa Barbara County condos aren't on it.

Question 2

Does FHA or conventional have higher loan limits in Santa Barbara County?

Accepted Answer

Both follow the same county conforming limits. FHA limits are set separately and are typically lower than conventional conforming limits.

Question 3

Which loan is faster to close?

Accepted Answer

Conventional typically closes faster. FHA requires an FHA appraisal with stricter property condition standards, which can add time.

Question 4

Can I remove FHA mortgage insurance later?

Accepted Answer

Not without refinancing. If you put less than 10% down on an FHA loan, MIP stays for the life of the loan.

Question 5

What credit score do I need for a conventional loan?

Accepted Answer

Lenders require a 620 minimum. But below 700, your rate and PMI cost go up. Above 740 is where conventional pricing gets competitive.

Question 6

Which loan works better for a fixer-upper in Goleta?

Accepted Answer

FHA 203k is built for rehab purchases. Standard conventional loans won't fund a property in poor condition — neither will a standard FHA loan.

Conventional vs FHA Loans in Goleta, CA