Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes — refinancing into conventional is common once your equity and credit improve. Many Gridley buyers use FHA to get in, then refinance out.

Question 2

Which loan has lower monthly payments?

Accepted Answer

Conventional usually wins for borrowers with good credit. FHA's mortgage insurance adds to the monthly cost even with a lower base rate.

Question 3

Does FHA work for fixer-uppers in Gridley?

Accepted Answer

FHA requires the home to meet minimum property standards. Serious fixer-uppers may not qualify unless you use an FHA 203k rehab loan.

Question 4

What credit score gets the best conventional rate?

Accepted Answer

Lenders tier pricing — 740 and above typically gets the sharpest conventional rates. Below 680, FHA often becomes the cheaper option.

Question 5

Is the FHA down payment really just 3.5%?

Accepted Answer

Yes, with a 580 or higher credit score. Scores between 500 and 579 require 10% down. Rates vary by borrower profile and market conditions.

Conventional vs FHA Loans in Gridley, CA