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 the mortgage insurance. Many Hanford borrowers do exactly that.

Question 2

Which loan is faster to close in Hanford?

Accepted Answer

Conventional loans typically move faster. FHA requires an appraisal that meets HUD property standards, which can slow things down.

Question 3

Does FHA work for a fixer-upper in Kings County?

Accepted Answer

Standard FHA requires the home to be move-in ready. The FHA 203k rehab loan is the exception if you need to finance repairs.

Question 4

What credit score gets me the best conventional rate?

Accepted Answer

Lenders tier rates by score. A 740+ score typically puts you in the top pricing tier. Rates vary by borrower profile and market conditions.

Question 5

Is the FHA down payment really only 3.5%?

Accepted Answer

Yes, with a 580+ credit score. Drop below 580 and lenders require 10% down. Scores below 500 don't qualify for FHA at all.

Question 6

Which loan has stricter property requirements?

Accepted Answer

FHA is stricter. The property must meet HUD's minimum standards. Conventional appraisals focus on value, not condition requirements.

Conventional vs FHA Loans in Hanford, CA