Question 1

Can I use FHA for a Pacific Grove condo?

Accepted Answer

Only if the complex appears on FHA's approved list. Many smaller Pacific Grove developments lack approval, forcing conventional financing.

Question 2

Does conventional financing require 20% down?

Accepted Answer

No. You can put down 3% with conventional. PMI applies until you reach 20% equity, but it costs less than FHA insurance for strong credit.

Question 3

Which loan works better for self-employed borrowers in Pacific Grove?

Accepted Answer

Both accept self-employed income with two years of tax returns. Conventional offers more flexibility on income calculation methods for complex situations.

Question 4

How does the FHA upfront premium work?

Accepted Answer

FHA charges 1.75% of your loan amount at closing. Most borrowers roll this into the mortgage rather than paying cash.

Question 5

Can I refinance from FHA to conventional later?

Accepted Answer

Yes. Many buyers start with FHA, build equity, then refinance to conventional to drop the mortgage insurance when rates improve.

Question 6

Do Pacific Grove sellers prefer conventional buyers?

Accepted Answer

Usually. Conventional deals close faster and have fewer property condition requirements, making offers stronger in competitive situations.

Conventional vs FHA Loans in Pacific Grove: Which Fits Your Coastal Property Goals?