Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinancing to conventional once you hit 20% equity eliminates FHA's permanent mortgage insurance. You need 620+ credit to qualify for the refi.

Question 2

Which loan type approves faster in Rolling Hills Estates?

Accepted Answer

Both take 21-30 days typically. FHA appraisals can add 3-5 days since inspectors must verify property condition meets stricter standards.

Question 3

Do conventional loans allow gift funds for down payment?

Accepted Answer

Yes, you can use 100% gifted funds on primary residences. FHA also allows gifts but requires more documentation from the donor.

Question 4

What credit score gets the best conventional rate?

Accepted Answer

740+ credit unlocks top-tier pricing. Scores between 680-739 work but cost 0.25-0.5% more in rate or upfront fees.

Question 5

Can I buy a fixer-upper with either loan?

Accepted Answer

FHA 203k renovation loans handle repairs up to $35,000. Conventional buyers need the home livable at closing or use a renovation product.

Conventional vs FHA Loans in Rolling Hills Estates: Which Works for Your Budget?