Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once you have 20% equity, refinancing into conventional removes MIP entirely. Many Madera buyers use this as a planned two-step.

Question 2

Which loan has lower monthly payments?

Accepted Answer

Conventional often wins long-term by dropping PMI. FHA's lifetime MIP makes it costlier over a full 30-year hold. Rates vary by borrower profile and market conditions.

Question 3

Does FHA require a home inspection?

Accepted Answer

FHA requires an appraisal that also checks basic property standards. It's stricter than conventional — sellers sometimes push back on FHA offers for that reason.

Question 4

What credit score do I need for conventional?

Accepted Answer

Most conventional lenders require 620 minimum. Below 700, expect higher rates — at 740+ you get the best pricing available.

Question 5

Are FHA loan limits a problem in Madera County?

Accepted Answer

FHA sets county-level loan limits. If your purchase price exceeds the Madera County FHA limit, you'd need conventional or jumbo financing instead.

Question 6

Can I use gift money for a conventional down payment?

Accepted Answer

Yes, with restrictions. On a primary home, conventional allows gift funds — but the rules vary by how much you're putting down. FHA is more flexible here.

Conventional vs FHA Loans in Madera, CA