Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinancing to conventional after hitting 20% equity eliminates MIP and usually lowers your rate. Most borrowers do this within 3-5 years.

Question 2

Which loan type approves faster in Commerce?

Accepted Answer

Approval speed depends on your documentation, not loan type. Both conventional and FHA close in 21-30 days with clean paperwork.

Question 3

Does FHA limit what Commerce properties I can buy?

Accepted Answer

FHA requires properties meet minimum safety standards. Condos need FHA approval, which some Commerce buildings lack, limiting your options slightly.

Question 4

How much does PMI cost compared to MIP?

Accepted Answer

Conventional PMI runs 0.3% to 1.5% yearly and cancels. FHA MIP runs 0.55% to 0.85% yearly and stays for the loan life on most purchases.

Question 5

Can I use a conventional loan with 3% down in Commerce?

Accepted Answer

Yes, conventional 97 programs allow 3% down for qualified first-time buyers. You'll pay PMI but avoid the lifetime MIP that FHA requires.

Conventional vs FHA Loans in Commerce: Which Path Gets You Home Faster?