Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, through a conventional refinance once you hit 20% equity. Most borrowers do this after 3-5 years to drop FHA's permanent mortgage insurance.

Question 2

Which loan type gets me a lower rate in Pico Rivera?

Accepted Answer

Depends on your credit score. Above 720, conventional typically wins. Below 680, FHA often delivers better rates despite the insurance costs.

Question 3

Do both loans work for condos and townhomes?

Accepted Answer

Yes, but FHA requires the complex to be FHA-approved. Conventional has fewer condo restrictions, giving you more Pico Rivera properties to choose from.

Question 4

How much does FHA mortgage insurance actually cost monthly?

Accepted Answer

Between 0.55-0.85% of your loan amount annually. On a $400k loan, that's $183-283 per month for the entire loan term.

Question 5

Can I use gift funds for down payment on both?

Accepted Answer

Yes. FHA allows 100% gift funds with 3.5% down. Conventional requires you contribute at least 5% from your own funds on most programs.

Conventional vs FHA Loans in Pico Rivera: Which Gets You the Best Deal?