Question 1

Can I get rid of PMI on a conventional loan?

Accepted Answer

Yes. PMI cancels automatically once you reach 80% loan-to-value through principal paydown. You can also request cancellation earlier if your home appreciates. FHA mortgage insurance never goes away, even at 80% equity.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional typically requires 620 FICO minimum; better rates start at 680. FHA accepts 580 FICO with compensating factors like stable income or reserves. Both programs work in Lynwood, but conventional offers better pricing above 700.

Question 3

Which loan costs less per month in Lynwood?

Accepted Answer

Conventional costs less long-term because PMI cancels. FHA's monthly payment stays higher due to permanent mortgage insurance. On a median Lynwood purchase, the difference is $100–$200 per month once conventional PMI drops.

Question 4

Do I need 20% down to avoid insurance?

Accepted Answer

Yes, on conventional. Anything below 20% requires PMI. FHA has no 20% option—you put 3.5% down and carry mortgage insurance for life. Conventional is the only path to insurance-free ownership.

Question 5

Which loan is faster to close in Lynwood?

Accepted Answer

FHA typically closes in 30–35 days. Conventional takes 35–45 days due to stricter appraisal and employment verification. Both are standard in Los Angeles County. Speed depends more on your documentation than the program.

Conventional vs FHA loans in Lynwood: which fits your budget?