Question 1

Can I remove FHA mortgage insurance without refinancing?

Accepted Answer

No. FHA insurance stays for the loan's life if you put down less than 10%. Refinancing to conventional is the only way to drop it after building equity.

Question 2

Which loan costs less with 5% down and 660 credit?

Accepted Answer

Usually FHA by a small margin initially, but conventional becomes cheaper after PMI cancels. Total cost over seven years typically favors conventional even at this credit level.

Question 3

Do conventional loans accept 5% down in Norwalk?

Accepted Answer

Yes, with 620+ credit and solid income documentation. You'll pay PMI until reaching 20% equity, but it drops automatically unlike FHA.

Question 4

Does FHA allow higher purchase prices than conventional?

Accepted Answer

No. Both have the same LA County loan limit of $832,750 for single-family homes. Above that, you need a jumbo loan regardless of program.

Question 5

Which loan closes faster in Norwalk?

Accepted Answer

Speed is similar, both around 30 days. FHA appraisals can take slightly longer due to stricter property condition requirements that may trigger repairs.

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