Question 1

Which loan has a lower down payment?

Accepted Answer

Both allow as little as 3–3.5% down. FHA requires 3.5% with a 580 score. Conventional allows 3% for qualifying first-time buyers.

Question 2

Can I drop mortgage insurance on an FHA loan?

Accepted Answer

On most FHA loans, MIP lasts the full loan term. The only way to remove it is to refinance into a conventional loan later.

Question 3

Which loan is easier to qualify for?

Accepted Answer

FHA is more forgiving on credit and debt ratios. If you've had past credit issues, FHA lenders have more flexibility.

Question 4

Does my credit score affect the rate on a conventional loan?

Accepted Answer

Yes. Conventional pricing adjusts sharply by credit score. A 680 score pays more than a 740 score — often significantly more. Rates vary by borrower profile and market conditions.

Question 5

Which loan type is better for Rio Dell buyers?

Accepted Answer

It depends on your credit and savings. We run both scenarios on every file — the right answer is different for each borrower.

Conventional vs FHA Loans in Rio Dell, CA