Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes — once you have 20% equity, refinancing into conventional removes the FHA mortgage insurance. That refi costs money, so run the numbers first.

Question 2

Which loan has lower rates in Livingston?

Accepted Answer

FHA rates often run slightly lower, but the mortgage insurance premium offsets that. Your total monthly payment is what matters. Rates vary by borrower profile and market conditions.

Question 3

Does FHA allow gift funds for the down payment?

Accepted Answer

Yes. FHA is flexible on gift funds from family. Conventional loans allow gifts too, but the rules depend on how much you put down.

Question 4

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down, or 500 with 10% down. Conventional typically starts at 620.

Question 5

Are there loan limits I need to worry about in Merced County?

Accepted Answer

Yes — both programs have county-level limits. Confirm current Merced County limits before choosing, especially if prices push toward the ceiling.

Question 6

Which loan is easier to get approved for?

Accepted Answer

FHA is generally more flexible on credit and DTI. Conventional approval gets easier as your credit score and down payment increase.

Conventional vs FHA Loans in Livingston, CA