Question 1

Can I use an FHA loan for a condo in Costa Mesa?

Accepted Answer

Yes, but the condo project must be FHA-approved. Conventional loans have fewer condo restrictions and broader project eligibility.

Question 2

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require at least 620. Better rates kick in around 740 and above.

Question 3

Does FHA mortgage insurance ever go away?

Accepted Answer

For most FHA loans today, MIP stays for the life of the loan. You'd need to refinance into conventional to remove it.

Question 4

Which loan has higher limits in Orange County?

Accepted Answer

Conventional conforming limits are higher than FHA limits in Orange County. That gap matters in a high-cost market like Costa Mesa.

Question 5

Is a conventional loan harder to qualify for?

Accepted Answer

Generally yes — stricter credit and debt-to-income requirements. FHA is more forgiving on both fronts.

Question 6

Can I put 3% down on a conventional loan?

Accepted Answer

Yes. Programs like Fannie Mae's HomeReady allow 3% down. You'll pay PMI, but it cancels once you reach 20% equity.

Conventional vs FHA Loans in Costa Mesa, CA