Question 1

Can I use an FHA loan to buy in Shasta Lake?

Accepted Answer

Yes. FHA loans work throughout Shasta County. Loan limits apply, so confirm the limit covers your purchase price.

Question 2

Which loan has a lower down payment?

Accepted Answer

FHA requires 3.5% down with a 580+ score. Conventional can go as low as 3%, but that requires excellent credit.

Question 3

Does FHA mortgage insurance ever go away?

Accepted Answer

Not automatically. If you put less than 10% down on an FHA loan, mortgage insurance stays for the life of the loan.

Question 4

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require at least 620. Better rates kick in around 740 and above.

Question 5

Can I switch from FHA to conventional later?

Accepted Answer

Yes, through a refinance. Many borrowers do this once they've built equity and improved their credit score.

Question 6

Which loan is better for a first-time buyer in Shasta Lake?

Accepted Answer

FHA if your credit or savings are limited. Conventional if you have solid credit and want to avoid permanent insurance costs.

Conventional vs FHA Loans in Shasta Lake, CA