Question 1

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

Accepted Answer

Standard FHA loans require the home to meet minimum property conditions. A property needing major repairs may fail the FHA appraisal.

Question 2

Does conventional always have a lower rate than FHA?

Accepted Answer

Not always. With a score below 680, FHA can actually price better. Rates vary by borrower profile and market conditions.

Question 3

How do I cancel FHA mortgage insurance?

Accepted Answer

If you put down less than 10%, FHA MIP stays for the loan's life. Your main exit is refinancing into a conventional loan once you have 20% equity.

Question 4

What's the minimum down payment for each loan?

Accepted Answer

FHA requires 3.5% with a 580+ credit score. Conventional can go as low as 3% down through certain programs, but PMI will apply.

Question 5

Which loan is better for a first-time buyer in Santa Paula?

Accepted Answer

Depends on your credit and savings. FHA is more forgiving to qualify. Conventional is cheaper long-term if you meet the credit bar.

Question 6

Can I have both an FHA and conventional loan at the same time?

Accepted Answer

Generally no — FHA limits you to one FHA loan at a time. Conventional loans have no such restriction if you qualify on income.

Conventional vs FHA Loans in Santa Paula, CA