Question 1

Which loan has lower monthly payments in Oakland?

Accepted Answer

It depends on your down payment and credit score. Conventional beats FHA long-term if you can drop PMI. Rates vary by borrower profile and market conditions.

Question 2

Can I use FHA to buy a multi-unit in Oakland?

Accepted Answer

Yes. FHA allows 2-4 unit purchases if you occupy one unit. Alameda County loan limits apply.

Question 3

Does FHA mortgage insurance ever go away?

Accepted Answer

Not if you put down less than 10%. With 10% or more down, MIP cancels after 11 years.

Question 4

What credit score do I need for conventional in Oakland?

Accepted Answer

Most conventional lenders require at least 620. Better rates kick in at 740 and above.

Question 5

Are FHA loan limits high enough for Oakland home prices?

Accepted Answer

Alameda County's FHA limit is $1,249,125 as of April 2026. That covers a wide range of Oakland properties.

Question 6

Can I switch from FHA to conventional later?

Accepted Answer

Yes — refinancing into conventional once you have 20% equity removes the MIP. Many Oakland buyers use FHA as a starting point.

Conventional vs FHA Loans in Oakland, CA