Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, once you hit 20% equity and 620+ credit you can refinance to conventional. This removes the permanent FHA mortgage insurance.

Question 2

Which loan type works better for Alhambra condos?

Accepted Answer

Both work if the condo is FHA-approved. Conventional offers more flexibility with non-warrantable condos that FHA won't touch.

Question 3

Does FHA require higher income than conventional?

Accepted Answer

No, both use the same 43-50% debt-to-income limits. FHA actually allows slightly higher ratios with compensating factors.

Question 4

How much do I really save skipping FHA mortgage insurance?

Accepted Answer

On a $570,000 loan, eliminating FHA insurance at 20% equity saves roughly $400 monthly. That's $4,800 yearly you keep as equity.

Question 5

Can sellers help more with FHA closing costs?

Accepted Answer

Yes, sellers can contribute 6% toward FHA costs versus 3% for conventional. That extra help matters when cash reserves run thin.

Conventional vs FHA Loans in Alhambra: Which Gets You Better Terms?