Question 1

Can I use both loans for a King City purchase?

Accepted Answer

Only one loan type per transaction. Choose based on your credit, down payment, and how long you plan to hold the home.

Question 2

Which loan has a lower interest rate?

Accepted Answer

Conventional rates beat FHA for borrowers with strong credit. FHA rates are often competitive for scores below 660. Rates vary by borrower profile and market conditions.

Question 3

Does FHA require a home inspection?

Accepted Answer

FHA requires an appraisal that meets HUD property standards — it's stricter than a conventional appraisal. Older King City homes may need repairs before FHA approval.

Question 4

Can I remove FHA mortgage insurance?

Accepted Answer

Not easily. Most FHA loans carry MIP for the loan's life. Refinancing into a conventional loan is the main exit once you have enough equity.

Question 5

What credit score do I need for conventional?

Accepted Answer

Lenders require at least 620. But the best rates kick in around 740 and above. Below 680, FHA often makes more financial sense.

Question 6

Which loan is faster to close?

Accepted Answer

Conventional typically closes faster. FHA adds an extra layer of property review that can slow things down if issues come up.

Conventional vs FHA Loans in King City, CA