Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once you build enough equity, you can refinance into a conventional loan and drop mortgage insurance. Many Calexico buyers do this after a few years.

Question 2

Which loan has lower down payment requirements?

Accepted Answer

Both go as low as 3–3.5%, but FHA accepts lower credit scores at that floor. Conventional at 3% down requires stronger credit.

Question 3

Does FHA or conventional close faster?

Accepted Answer

Conventional loans typically close faster. FHA requires an FHA appraisal with stricter property standards, which can add time.

Question 4

Is FHA always cheaper for first-time buyers?

Accepted Answer

Not always. FHA's upfront and annual mortgage insurance premiums add cost. Run a full comparison — conventional may cost less over time.

Question 5

What credit score gets the best conventional rate?

Accepted Answer

Lenders price conventional loans in tiers. A 740+ score typically gets the best rate. Rates vary by borrower profile and market conditions.

Question 6

Do FHA loan limits affect Calexico buyers?

Accepted Answer

Yes. FHA sets county-level loan limits for Imperial County. If your purchase price exceeds that limit, you'll need conventional or jumbo financing.

Conventional vs FHA Loans in Calexico, CA