Question 1

What credit score do I need for Conventional vs FHA in Dunsmuir?

Accepted Answer

FHA accepts 580 minimum, Conventional requires 620+. Scores above 680 get better rates on Conventional loans, making them cheaper long-term.

Question 2

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

Not unless you put 10%+ down or refinance to Conventional. Most FHA loans carry insurance for the full 30 years, costing $137-212 monthly on a $300k loan.

Question 3

Which loan type costs less over 30 years?

Accepted Answer

Conventional saves more due to cancellable PMI and no upfront premium. FHA's lifetime insurance and 1.75% upfront charge add significant cost over three decades.

Question 4

How much down payment do I need for each program?

Accepted Answer

FHA requires 3.5% minimum, Conventional typically 5%. Both work in Dunsmuir's price range, but Conventional's extra 1.5% down avoids the costly upfront insurance premium.

Question 5

Do Dunsmuir home prices affect which loan I should pick?

Accepted Answer

Both programs cover typical Dunsmuir prices easily. Your credit score and down payment matter more than home value when choosing between these two options.

Conventional vs FHA Loans in Dunsmuir: Which Fits Your Mountain Town Budget?