Question 1

Can I get a conventional loan with less than 5% down in Manhattan Beach?

Accepted Answer

Yes — some lenders offer 3% conventional programs, but they carry higher rates and PMI. FHA at 3.5% down is often cheaper. Compare both before deciding.

Question 2

Does FHA mortgage insurance ever go away?

Accepted Answer

Not unless you refinance into a conventional loan later. If you put down 10% or more on FHA, mortgage insurance drops after 11 years. Below 10% down, it stays for the life of the loan.

Question 3

What credit score do I need for each program?

Accepted Answer

FHA accepts 580 and up. Conventional typically requires 620 or higher. Both programs have overlays—individual lenders may set their own minimums above these floors.

Question 4

Which program closes faster in Manhattan Beach?

Accepted Answer

Conventional usually closes in 30–35 days. FHA takes 35–45 days due to appraisal requirements. Both depend on your lender's workload and document turnaround.

Question 5

Will my monthly payment be lower with conventional or FHA?

Accepted Answer

Conventional is typically lower once PMI cancels. FHA's permanent mortgage insurance keeps the payment higher over time. The gap widens the longer you hold the loan.

Conventional vs FHA in Manhattan Beach: Which Loan Wins?