Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinance once you hit 20% equity and 620+ credit. You'll drop FHA's lifetime mortgage insurance and likely lower your rate.

Question 2

Which loan type closes faster in San Joaquin?

Accepted Answer

Both take 30-40 days typically. FHA appraisals sometimes require extra repairs, which can add a week to closing if the property needs work.

Question 3

Does FHA or conventional handle higher debt ratios better?

Accepted Answer

FHA allows up to 56.9% total debt ratio with strong credit. Conventional caps around 50% depending on the lender and compensating factors.

Question 4

How much does PMI cost on conventional loans?

Accepted Answer

Expect 0.3%-1.5% annually based on credit score and down payment. A 5% down loan at 700 credit runs about 0.5% of the loan amount yearly.

Question 5

Can sellers pay closing costs on both loan types?

Accepted Answer

Yes. FHA allows up to 6% seller concessions. Conventional caps at 3%-9% depending on down payment size, with lower down payments allowing more.

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