Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinance to conventional once you hit 20% equity and 680+ credit. You'll drop the FHA insurance and likely lower your rate. Most borrowers refinance within 3-5 years.

Question 2

Which loan has lower closing costs in Baldwin Park?

Accepted Answer

FHA costs more upfront due to the 1.75% insurance premium. On a $500K loan, that's $8,750 added to your loan balance. Conventional has lower total closing costs for qualified buyers.

Question 3

Does my credit score really matter that much?

Accepted Answer

A 680 score gets you conventional at 6.5%. A 620 score might mean 7.25%. That's $200/month on a $450K loan — $72K over 30 years.

Question 4

Can sellers help with closing costs on both loans?

Accepted Answer

Yes, but FHA allows up to 6% seller concessions while conventional caps at 3-9% depending on down payment. FHA gives buyers more negotiating room.

Question 5

What if I have student loans or high DTI?

Accepted Answer

FHA calculates student loans more favorably than conventional in some cases. Conventional caps DTI at 50%, FHA sometimes allows 56% with strong compensating factors.

Conventional vs FHA Loans in Baldwin Park: Which Mortgage Fits Your Budget?