Question 1

Can I use an FHA loan to buy in Salinas?

Accepted Answer

Yes. Salinas falls within Monterey County FHA loan limits. Confirm the current limit with your broker before making an offer.

Question 2

Which loan has a lower down payment?

Accepted Answer

FHA requires 3.5% down with a 580 credit score. Conventional goes as low as 3% but requires stronger credit to qualify.

Question 3

Does FHA mortgage insurance ever go away?

Accepted Answer

On most FHA loans made after 2013, MIP stays for the life of the loan. You'd need to refinance into conventional to remove it.

Question 4

What credit score do I need for a conventional loan?

Accepted Answer

Lenders require a minimum 620 score. To get competitive rates, you really want 680 or higher.

Question 5

Which loan is better for first-time buyers in Salinas?

Accepted Answer

Depends on your credit and savings. FHA gives more access; conventional saves money long-term. Run the numbers on both.

Question 6

Can I switch from FHA to conventional later?

Accepted Answer

Yes, by refinancing. Many borrowers start with FHA, build equity, then refinance into conventional to drop the mortgage insurance.

Conventional vs FHA Loans in Salinas, CA