Question 1

What credit score do I need for a conventional loan in Berkeley?

Accepted Answer

Most lenders require 620 minimum. You need 740+ to get the best conventional rates.

Question 2

Does FHA mortgage insurance ever go away?

Accepted Answer

On most FHA loans made after 2013 with less than 10% down, MIP lasts the life of the loan. The only exit is refinancing into a conventional loan.

Question 3

Which loan do Berkeley sellers prefer?

Accepted Answer

Most sellers prefer conventional offers. FHA appraisals require specific property conditions, which adds risk in a competitive market.

Question 4

Can I use FHA for a condo in Berkeley?

Accepted Answer

Only if the condo project is FHA-approved. Many Berkeley condo buildings aren't on the approved list — check before making an offer.

Question 5

What's the minimum down payment for each loan?

Accepted Answer

FHA requires 3.5% with a 580+ score. Conventional allows 3% down but requires PMI until you reach 20% equity.

Question 6

Is it worth refinancing out of FHA into conventional?

Accepted Answer

If you've built 20% equity and your credit improved, refinancing into conventional removes MIP. Run the break-even math on closing costs first.

Conventional vs FHA Loans in Berkeley, CA