Question 1

Which loan has lower monthly payments in San Leandro?

Accepted Answer

It depends on your down payment and credit score. Conventional wins long-term if you avoid PMI, but FHA can be cheaper upfront for lower-credit borrowers.

Question 2

Can I remove mortgage insurance from an FHA loan?

Accepted Answer

Not easily. If you put less than 10% down, FHA MIP stays for the life of the loan. Refinancing into conventional is the typical exit.

Question 3

Do FHA loans have limits in Alameda County?

Accepted Answer

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

Question 4

Will sellers in San Leandro reject FHA offers?

Accepted Answer

Some will. FHA appraisals flag property condition issues that conventional appraisals often pass. In tight markets, that makes some sellers hesitate.

Question 5

What credit score do I need for a conventional loan?

Accepted Answer

Lenders require at least 620. But the best rates start showing up around 740. Below 680, run the FHA numbers before committing.

Question 6

Is FHA or conventional better for first-time buyers?

Accepted Answer

FHA fits buyers with limited savings or rebuilding credit. Conventional is better if your score is strong and you can put down 5% or more.

Conventional vs FHA Loans in San Leandro