Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, most borrowers refinance to conventional once they hit 20% equity and their credit improves. This eliminates FHA's permanent mortgage insurance and typically lowers your monthly payment.

Question 2

Which loan closes faster in Torrance?

Accepted Answer

Conventional loans close 3-5 days faster on average because appraisals are less strict and underwriting is simpler. Sellers prefer them in competitive situations for this reason.

Question 3

Does FHA require higher down payments for condos?

Accepted Answer

No, FHA keeps the same 3.5% minimum for condos. But the condo complex must be FHA-approved, which eliminates many buildings in Torrance from eligibility.

Question 4

Why does FHA mortgage insurance never go away?

Accepted Answer

FHA changed rules in 2013 to make insurance permanent on most loans. This funds their insurance pool but costs borrowers thousands over time compared to conventional PMI.

Question 5

Can I use FHA with bad credit after bankruptcy?

Accepted Answer

Yes, FHA allows financing two years after bankruptcy discharge and three years after foreclosure. Conventional loans typically require four and seven years respectively.

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