Question 1

Can I use FHA to buy a fixer-upper in Healdsburg?

Accepted Answer

Only if repairs are minor. FHA appraisers flag safety issues like bad wiring or foundation cracks. Those must be fixed before closing, which most sellers won't do.

Question 2

What credit score do I actually need for conventional?

Accepted Answer

620 minimum, but expect higher rates and 15-20% down below 680. At 740+, you access the best pricing tiers and can go as low as 3% down.

Question 3

Does FHA mortgage insurance ever go away?

Accepted Answer

Only through refinancing to conventional or paying off the loan. Put 10%+ down and it drops after 11 years, but most buyers refi sooner.

Question 4

Which loan works better for Healdsburg's price range?

Accepted Answer

Most homes exceed FHA's $644,000 limit, pushing buyers to conventional or jumbos. FHA works for condos and smaller properties under that cap.

Question 5

How much does PMI actually cost compared to FHA insurance?

Accepted Answer

Conventional PMI runs 0.3-1.5% annually and cancels. FHA charges 1.75% upfront plus 0.55-0.85% yearly forever. Conventional saves long-term with decent credit.

Conventional vs FHA Loans in Healdsburg: Which Fits Your Wine Country Budget?