Question 1

Can I use an FHA loan to buy in San Anselmo?

Accepted Answer

Yes, but Marin County FHA loan limits apply. Verify the current limit before assuming it covers your target price.

Question 2

Which loan has a lower down payment?

Accepted Answer

Both can go as low as 3-3.5%. FHA requires 3.5% at 580+ credit; some conventional programs allow 3% with strong credit.

Question 3

Does FHA mortgage insurance ever go away?

Accepted Answer

On most FHA loans today, MIP stays for the full loan term. The only way out is to refinance into a conventional loan later.

Question 4

Which loan is easier to qualify for?

Accepted Answer

FHA is more forgiving on credit scores and debt-to-income ratios. Conventional requires stronger financials but costs less long-term.

Question 5

Are interest rates different between FHA and conventional?

Accepted Answer

FHA rates are often slightly lower, but the MIP cost usually offsets that. Compare total monthly payment, not just the rate.

Question 6

Can I switch from FHA to conventional later?

Accepted Answer

Yes — refinancing into a conventional loan once you have 20% equity removes MIP entirely. Many Marin buyers do exactly that.

Conventional vs FHA Loans in San Anselmo