Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes — refinancing into conventional removes FHA mortgage insurance once you have enough equity. Most borrowers do this once they hit 20% equity.

Question 2

Which loan has a higher limit in Placer County?

Accepted Answer

Conventional conforming limits exceed FHA limits in most cases. Check current Placer County limits before assuming FHA covers your purchase price.

Question 3

Does FHA work on new construction in Lincoln?

Accepted Answer

Yes, FHA finances new construction. The property must meet FHA condition standards, which most new builds satisfy without issue.

Question 4

Is the down payment really the same on both?

Accepted Answer

Close — conventional allows 3% down, FHA allows 3.5% with a 580 score. Below 580, FHA requires 10% down.

Question 5

Which loan is easier to qualify for with a co-borrower?

Accepted Answer

FHA is more flexible with non-occupant co-borrowers. Conventional has stricter rules on how co-borrower income is counted.

Question 6

Do both loans allow gift funds for the down payment?

Accepted Answer

Yes. Both programs allow gift funds from family. FHA is more flexible about the sourcing and documentation requirements.

Conventional vs FHA Loans in Lincoln, CA