Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes — refinancing from FHA to conventional is common once your equity hits 20%. It removes lifetime MIP and can lower your monthly payment.

Question 2

Which loan has higher limits in Monterey County?

Accepted Answer

Both FHA and conventional conforming limits are set by county. Monterey County limits apply to both programs — ask us for current figures.

Question 3

Does FHA accept gift funds for the down payment?

Accepted Answer

Yes. FHA allows 100% of the down payment to come from a gift. Conventional loans allow gifts too, but rules vary by down payment size.

Question 4

Is conventional always cheaper than FHA?

Accepted Answer

Not always. Borrowers with lower credit scores often get better pricing through FHA. The comparison shifts with your credit and down payment amount.

Question 5

What credit score do I need for conventional in Soledad?

Accepted Answer

Most conventional lenders want 620 minimum. Better pricing kicks in around 740+. Below 660, FHA often makes more financial sense.

Conventional vs FHA Loans in Soledad, CA