Question 1

Can I use FHA for a Lafayette condo?

Accepted Answer

Only if the complex is FHA-approved. Many Lafayette condos aren't on the approved list, forcing you to conventional. Check HUD's database before making offers.

Question 2

What credit score gets me the best conventional rate?

Accepted Answer

740+ unlocks top-tier pricing. Every 20-point drop below that costs about 0.25% in rate. A 680 score still qualifies but expect to pay 0.5-0.75% more than 760.

Question 3

Does FHA mortgage insurance ever drop off?

Accepted Answer

Only if you put 10%+ down—then it drops after 11 years. Under 10% down, MIP lasts the full 30 years unless you refinance to conventional.

Question 4

Which loan works for a $500,000 Lafayette home?

Accepted Answer

Both fit under the $766,550 limit. Conventional costs less monthly with 660+ credit. FHA makes sense only if your score is under 640 or down payment is tight.

Question 5

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinance once you hit 10-20% equity and 620+ credit. Most Lafayette buyers do this within 3-5 years to dump the lifetime MIP.

Conventional vs FHA Loans in Lafayette: Which Mortgage Fits Your Budget?