Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once you build enough equity, refinancing into conventional removes MIP. Rates vary by borrower profile and market conditions.

Question 2

Which loan has lower closing costs?

Accepted Answer

FHA upfront MIP adds 1.75% of the loan amount at closing. Conventional closing costs vary but usually skip that fee.

Question 3

Does property condition affect which loan I can use?

Accepted Answer

FHA appraisers flag health and safety issues that can stall or kill approval. Conventional appraisals focus more on value than condition.

Question 4

What credit score do I need for each loan?

Accepted Answer

FHA allows 580 with 3.5% down. Conventional typically requires 620 minimum, with better rates above 740.

Question 5

Which loan is better for a first-time buyer in Mariposa?

Accepted Answer

FHA is more accessible if your credit or savings are limited. Strong-credit first-timers often do better with conventional.

Conventional vs FHA Loans in Mariposa, CA