Question 1

What credit score do I need for each loan?

Accepted Answer

FHA requires a 580 for 3.5% down. Conventional lenders require at least 620, but better rates start around 740.

Question 2

Can I drop mortgage insurance on an FHA loan?

Accepted Answer

Not easily. Most FHA loans carry mortgage insurance for the life of the loan. You'd need to refinance into a conventional loan to remove it.

Question 3

Which loan has a lower down payment?

Accepted Answer

FHA wins here — 3.5% down versus 3-5% for conventional. Both are close, but FHA allows it at a lower credit score.

Question 4

Are FHA loan limits a problem in Siskiyou County?

Accepted Answer

Unlikely. Siskiyou County home prices tend to be well below FHA's loan limits. Most buyers here won't run into a ceiling.

Question 5

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

Accepted Answer

FHA is often the easier entry point. But if your credit and savings are strong, conventional can be cheaper from day one.

Conventional vs FHA Loans in Dorris, CA