Question 1

Can I avoid mortgage insurance with an FHA loan?

Accepted Answer

No. FHA requires MIP on all loans. The only exit is refinancing into a conventional loan once you have enough equity.

Question 2

Which loan has a higher loan limit in Merced County?

Accepted Answer

Both follow conforming and FHA county limits set annually. Ask us for the current Merced County limits before you shop.

Question 3

Does FHA allow seller concessions?

Accepted Answer

Yes. Sellers can contribute up to 6% of the purchase price toward your closing costs. Conventional caps it at 3% in most cases.

Question 4

What credit score gets the best conventional rate?

Accepted Answer

Lenders tier rates at 740 and above. Below that, your rate steps up as your score steps down.

Question 5

Can I use gift money for a conventional down payment?

Accepted Answer

Yes, with conditions. The gift must come from an approved source and be documented. FHA rules on gifts are more flexible.

Conventional vs FHA Loans in Gustine, CA