Question 1

Can I switch from FHA to Conventional later?

Accepted Answer

Yes. Once you have 20% equity and stronger credit, refinancing into a Conventional loan removes mortgage insurance and often lowers your rate.

Question 2

Which loan has a lower down payment?

Accepted Answer

Both offer low down payment options. FHA starts at 3.5%, and Conventional can go as low as 3% for qualified buyers.

Question 3

Does FHA work for investment properties in Isleton?

Accepted Answer

No. FHA requires owner occupancy. If you're buying a rental or investment property, you need Conventional or a non-QM loan.

Question 4

What credit score is needed for each loan?

Accepted Answer

FHA allows scores as low as 580 with 3.5% down. Conventional typically requires 620 minimum, with better rates above 740.

Question 5

Which loan is better for a first-time buyer?

Accepted Answer

FHA fits buyers with lower credit or limited savings. Conventional is better if you qualify — it costs less over time.

Question 6

Are FHA loan limits high enough for Sacramento County?

Accepted Answer

FHA loan limits in Sacramento County apply to all cities including Isleton. Confirm current limits with your broker before assuming they cover your purchase price.

Conventional vs FHA Loans in Isleton, CA