Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, you can refinance from FHA to conventional once you build 20% equity and your credit improves. This eliminates the lifelong FHA mortgage insurance and typically reduces your monthly payment.

Question 2

Which loan closes faster in Moraga?

Accepted Answer

Both programs close in similar timeframes, typically 30-45 days. Conventional loans may move slightly faster due to fewer government requirements, but your lender's efficiency matters more than loan type.

Question 3

Do FHA loans require more paperwork?

Accepted Answer

FHA loans involve additional documentation for government compliance, including property appraisals meeting specific standards. The difference is minor, and both programs require thorough income and asset verification.

Question 4

What credit score do I need for each option?

Accepted Answer

FHA loans accept scores as low as 580 for 3.5% down. Conventional loans typically require 620 minimum, though 740+ scores receive the best pricing. Individual lender requirements may vary.

Question 5

Which loan type costs less overall?

Accepted Answer

Conventional loans typically cost less for borrowers with strong credit and 20% down. FHA may cost less upfront but more over time due to permanent mortgage insurance. Your profile determines the winner.

Conventional vs FHA Loans in Moraga: Which Mortgage Fits Your Needs?