Question 1

Which loan has lower monthly payments in Downey?

Accepted Answer

Conventional wins with 700+ credit. Below 680, FHA often costs less despite mortgage insurance staying on longer.

Question 2

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinance once your credit improves and equity reaches 20%. You'll eliminate FHA mortgage insurance permanently.

Question 3

Do both loans work for Downey condos?

Accepted Answer

Both approve condos, but the building needs FHA certification for those loans. Conventional has fewer condo restrictions.

Question 4

Which loan closes faster?

Accepted Answer

Conventional typically closes in 21-30 days. FHA adds 3-5 days for appraisal requirements and certification checks.

Question 5

Can I use gift funds for down payment?

Accepted Answer

Both allow gifted down payments from family. FHA permits gifts to cover the entire 3.5% minimum down payment.

Conventional vs FHA Loans in Downey: Which Fits Your Budget?