Question 1

What is the FHA loan limit in Santa Barbara County?

Accepted Answer

Santa Barbara County is a high-cost area. FHA limits here are higher than the national baseline — contact us for the current county-specific ceiling.

Question 2

Can I cancel FHA mortgage insurance?

Accepted Answer

On most FHA loans with less than 10% down, MIP stays for the life of the loan. Refinancing into conventional is usually the only exit.

Question 3

Which loan has a lower down payment requirement?

Accepted Answer

FHA requires 3.5% down with a 580 score. Conventional can go as low as 3%, but you'll need a stronger credit profile to qualify.

Question 4

Does FHA work on Santa Barbara condos?

Accepted Answer

Only FHA-approved condo projects qualify. Many Santa Barbara condo buildings aren't on the approved list — verify before you make an offer.

Question 5

Which loan is easier to qualify for?

Accepted Answer

FHA is more forgiving on credit and debt-to-income. Conventional requires stronger financials but costs less long-term for most qualified buyers.

Question 6

Can I use gift funds for either loan?

Accepted Answer

Yes, both programs allow gift funds for the down payment. FHA is more flexible on sourcing rules — conventional lenders scrutinize gift documentation more closely.

Conventional vs FHA Loans in Santa Barbara