Question 1

Can I use an FHA loan on a Sonoma County vacation property?

Accepted Answer

No. FHA requires owner occupancy — it's for primary residences only. Conventional works for second homes and investment properties.

Question 2

Does FHA mortgage insurance ever go away?

Accepted Answer

On most FHA loans with less than 10% down, MIP lasts the full loan term. Putting 10% down lets it cancel after 11 years.

Question 3

Which loan has higher limits in Sonoma County?

Accepted Answer

Conventional conforming limits are generally higher than FHA limits. For expensive Sonoma properties, that gap can be decisive.

Question 4

What credit score do I need for conventional?

Accepted Answer

Most lenders want at least 620. To get competitive rates, aim for 700 or higher — that's where pricing gets noticeably better.

Question 5

Can I refinance out of FHA into conventional later?

Accepted Answer

Yes. Once you build enough equity and improve your credit, refinancing into conventional removes MIP. Many borrowers plan for this.

Question 6

Which loan closes faster?

Accepted Answer

Conventional typically moves faster. FHA requires an FHA appraisal with additional property condition standards, which can add time.

Conventional vs FHA Loans in Sonoma, CA