Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once you build enough equity, you can refinance into conventional and drop MIP entirely. Many borrowers do this as soon as they hit 20% equity.

Question 2

Which loan has a higher loan limit in Humboldt County?

Accepted Answer

Both follow conforming loan limits set annually by FHFA and HUD. In Humboldt County, both limits align closely — check current limits before assuming your price point qualifies.

Question 3

Does FHA allow lower credit scores than conventional?

Accepted Answer

Yes. FHA goes to 580 for 3.5% down. Conventional requires 620 minimum. That gap matters a lot for buyers rebuilding credit.

Question 4

Is the FHA down payment requirement really lower?

Accepted Answer

FHA requires 3.5% down at 580+. Conventional can go to 3% down but typically requires stronger credit to get there.

Question 5

Which loan is better for a fixer-upper in Arcata?

Accepted Answer

FHA has a 203k rehab option built in. Conventional renovation loans exist but are less common. If the home needs work, FHA often has more solutions.

Question 6

Does a larger down payment change which loan is better?

Accepted Answer

At 20% down, conventional wins clearly — no PMI at all. FHA always carries MIP regardless of down payment size.

Conventional vs FHA Loans in Arcata, CA