Question 1

Can I use an FHA loan to buy a condo in Davis?

Accepted Answer

Yes, but the condo complex must be FHA-approved. Many smaller complexes near UC Davis are not on the approved list.

Question 2

Does FHA have loan limits in Yolo County?

Accepted Answer

Yes. FHA sets county-level loan limits. Check current Yolo County limits before assuming FHA covers your target price.

Question 3

Which loan is faster to close?

Accepted Answer

Conventional loans typically close faster. FHA requires additional property condition standards that can slow things down.

Question 4

Can I remove FHA mortgage insurance later?

Accepted Answer

Not on loans with less than 10% down — MIP stays for the loan's life. Refinancing to conventional is the only exit.

Question 5

What credit score gets the best conventional rate?

Accepted Answer

Lenders tier rates at 680, 700, 720, and 740+. Above 740 gets you the sharpest pricing. Rates vary by borrower profile and market conditions.

Question 6

Which loan works better in a competitive offer situation?

Accepted Answer

Conventional offers are viewed more favorably by sellers. FHA's property requirements can make sellers nervous about inspection outcomes.

Conventional vs FHA Loans in Davis, CA