Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, you can refinance from an FHA loan to a conventional mortgage once you build 20% equity and your credit improves. This eliminates ongoing mortgage insurance.

Question 2

Which loan type has lower interest rates in Concord?

Accepted Answer

Rates vary by borrower profile and market conditions. Conventional loans typically offer better rates for borrowers with credit scores above 700, while FHA rates may be competitive for those with lower scores.

Question 3

Do both loan types work for Concord condos?

Accepted Answer

Yes, but the condo complex must meet certain requirements. FHA has stricter approval standards for condo buildings than conventional loans.

Question 4

How much does mortgage insurance cost on each?

Accepted Answer

FHA charges 1.75% upfront plus 0.55-0.85% annually. Conventional PMI varies from 0.3-1.5% annually based on your down payment and credit score.

Question 5

Can sellers pay closing costs with both programs?

Accepted Answer

Sellers can contribute to closing costs with both loans. FHA allows up to 6% seller concessions, while conventional loans typically allow 3-9% depending on down payment size.

Conventional vs FHA Loans in Concord: Which Mortgage Works Best for You?