Question 1

What's the FHA loan limit in Alameda County?

Accepted Answer

Alameda County is a high-cost area, so FHA limits are higher than the national baseline. Check current limits before assuming FHA can't cover your purchase price.

Question 2

Can I drop FHA mortgage insurance later?

Accepted Answer

On most FHA loans, mortgage insurance stays for the life of the loan. The only way out is refinancing into a conventional loan once you have enough equity.

Question 3

Which loan has the lower down payment?

Accepted Answer

FHA requires 3.5% down with a 580+ credit score. Conventional can go as low as 3% down, but you'll need strong credit and income to qualify at that level.

Question 4

Does Livermore's market affect which loan I should use?

Accepted Answer

Yes. In competitive markets, sellers sometimes prefer conventional offers. An FHA offer on a fixer-upper can also fall apart over appraisal conditions.

Question 5

Can I use either loan for a multi-unit property?

Accepted Answer

Both allow 2-4 unit purchases if you live in one unit. FHA has lower down payment requirements for multi-unit, but the numbers change quickly.

Question 6

What credit score gets me the best conventional rate?

Accepted Answer

Conventional pricing tiers improve at 680, 700, 720, and 740. Above 740 with 20% down puts you in the best pricing bucket most lenders offer.

Conventional vs FHA Loans in Livermore, CA