Question 1

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.

Question 2

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

Not easily. FHA mortgage insurance stays for the life of the loan in most cases. Conventional PMI cancels at 20% equity.

Question 3

Which loan is better for a first-time buyer in Mission Viejo?

Accepted Answer

It depends on your credit and savings. FHA is more forgiving — conventional costs less if you qualify.

Question 4

Do both loans work for Orange County home prices?

Accepted Answer

Yes, but check the loan limits. Orange County has higher limits on both programs, though conventional typically goes higher.

Question 5

Which loan closes faster?

Accepted Answer

Conventional loans generally have fewer appraisal requirements. FHA appraisals are stricter and can slow things down.

Question 6

What credit score do I need for each loan?

Accepted Answer

FHA allows 580 with 3.5% down. Conventional typically requires 620 minimum, with best rates at 740 and above.

Conventional vs FHA Loans in Mission Viejo