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in Dixon, CA
Dixon buyers have two solid paths to financing. Conventional and FHA loans each fit a different borrower profile.
The right choice comes down to your credit score, down payment, and how long you plan to keep the loan.
Conventional loans aren't government-backed. Lenders take on more risk, so they require stronger credit and larger down payments.
The payoff is real. No upfront mortgage insurance premium and lower monthly costs once you hit 20% equity.
FHA loans are insured by the federal government. That backing lets lenders approve borrowers with lower scores and smaller down payments.
You can qualify with a 580 credit score and 3.5% down. Scores between 500–579 require 10% down.
Local decision guide
Use this comparison to weigh Conventional Loans and FHA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Dixon.
Dixon buyers have two solid paths to financing. Conventional and FHA loans each fit a different borrower profile.
The right choice comes down to your credit score, down payment, and how long you plan to keep the loan.
Conventional loans aren't government-backed. Lenders take on more risk, so they require stronger credit and larger down payments.
Mortgage insurance is the biggest cost difference. FHA charges it upfront and annually — often for the full loan term.
HousingWire flagged the 30-year fixed hitting 6.57% recently. At that rate, FHA's mortgage insurance makes monthly costs noticeably higher than conventional. Rates vary by borrower profile and market conditions.
Conventional lets you cancel PMI. FHA annual MIP typically sticks unless you refinance out of it.
Credit score below 620? FHA is likely your only option here. It's built for borrowers still building their profile.
Credit score above 700 with 5% or more saved? Run the conventional numbers first. The long-term savings on mortgage insurance add up fast.
Sitting in the middle — scores in the 620–680 range? Compare both. Sometimes FHA's lower rate offsets the insurance cost.
Yes. Dixon is in Solano County and FHA loans are available here. Confirm current county loan limits with us before you start shopping.
Both go as low as 3–3.5% down. FHA requires 3.5% at 580+ credit. Conventional can go 3% for qualified first-time buyers.
On most FHA loans with less than 10% down, MIP stays for the life of the loan. Refinancing into conventional is usually the exit.
Lenders require at least 620 for conventional approval. Rates improve significantly once you're above 700.
Yes, through a refinance. Many buyers use FHA to get in, then refinance to conventional once their equity and credit improve.
FHA is more forgiving on credit and debt-to-income ratios. Conventional approvals require stronger financials across the board.