Question 1

Can I use an FHA loan to buy a condo in Riverside?

Accepted Answer

Only FHA-approved condo projects qualify. Conventional financing covers far more condo buildings without that restriction.

Question 2

Which loan has a lower interest rate in Riverside?

Accepted Answer

FHA rates are often slightly lower, but higher mortgage insurance costs typically offset that advantage. Rates vary by borrower profile and market conditions.

Question 3

Does FHA or conventional allow a lower down payment?

Accepted Answer

Both go as low as 3–3.5% down. FHA requires 3.5% at 580 credit. Conventional 3% programs require stronger credit.

Question 4

Can I drop mortgage insurance on an FHA loan?

Accepted Answer

Not on most 30-year FHA loans. You'd need to refinance into a conventional loan once you hit 20% equity.

Question 5

What credit score do I need for a conventional loan in Riverside?

Accepted Answer

Most conventional lenders require 620 minimum. Better rates kick in at 700 and above.

Question 6

Which loan is better for a fixer-upper in Riverside?

Accepted Answer

FHA 203k covers purchase plus renovation costs in one loan. Conventional renovation options exist but have stricter requirements.

Conventional vs FHA Loans in Riverside, CA