Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, most borrowers refinance to conventional once they hit 20% equity and 680+ credit. You'll drop mortgage insurance and often lower your rate simultaneously.

Question 2

Which loan type closes faster in Hercules?

Accepted Answer

Both take 25-35 days typically. FHA appraisals can add 3-5 days since inspectors check more safety items, but it rarely delays closing in Contra Costa County.

Question 3

Does FHA insurance really never drop off?

Accepted Answer

Correct for loans with less than 10% down. You pay monthly insurance for 30 years unless you refinance to conventional or pay off the loan.

Question 4

What credit score makes conventional cheaper than FHA?

Accepted Answer

Around 680 is the breakeven point. Above that, conventional's better rate pricing beats FHA despite similar down payments.

Question 5

Can I use both loan types for investment properties?

Accepted Answer

No. FHA requires owner occupancy. Conventional allows investment properties but requires 15-25% down depending on property type.

Conventional vs FHA Loans in Hercules: Which Saves You More Money?