Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinancing to conventional once you hit 20% equity removes FHA's permanent mortgage insurance. You'll need 620+ credit to qualify for the refinance.

Question 2

Which loan type closes faster in Covina?

Accepted Answer

Conventional typically closes 3-5 days faster since there's no FHA appraisal review period. Sellers often favor conventional offers for this reason.

Question 3

Do both loans allow gift funds for down payment?

Accepted Answer

Yes, both accept gift funds from family. FHA allows 100% of down payment as gift, conventional requires 5% borrower funds on investment properties only.

Question 4

What's the minimum down payment for each?

Accepted Answer

FHA requires 3.5% down with 580 credit. Conventional starts at 3% for qualified first-time buyers through special programs.

Question 5

How much does FHA mortgage insurance really cost?

Accepted Answer

You pay 1.75% upfront plus 0.55%-0.85% annually. On a $500k loan, that's $8,750 at closing and $275-$350 monthly for the loan's life.

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