Question 1

Which loan has a lower down payment in Sonora?

Accepted Answer

FHA requires as little as 3.5% down. Conventional can go as low as 3%, but that typically requires strong credit and private mortgage insurance.

Question 2

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

On most FHA loans originated after 2013, MIP stays for the life of the loan. The only exit is refinancing into a conventional loan.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require at least 620. You won't see the best rates until you're above 740.

Question 4

Are FHA loan limits an issue in Tuolumne County?

Accepted Answer

FHA limits are lower than conventional conforming limits. If your purchase price pushes those limits, conventional may be your only option.

Question 5

Which loan is faster to close in Sonora?

Accepted Answer

Both can close in 21–30 days with a prepared borrower. FHA appraisals have stricter property condition standards, which can slow things down.

Question 6

Is FHA a bad option if I have good credit?

Accepted Answer

Not bad — just usually more expensive. The permanent MIP offsets FHA's rate, so borrowers with strong credit almost always save money with conventional.

Conventional vs FHA Loans in Sonora, CA