Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once your equity and credit improve, you can refinance into a conventional loan and drop mortgage insurance. Many borrowers do exactly that.

Question 2

Which loan has lower monthly payments?

Accepted Answer

It depends on your down payment and credit score. Conventional often wins long-term once PMI cancels. FHA can be cheaper upfront for lower credit borrowers.

Question 3

Does FHA work for older homes in San Juan Bautista?

Accepted Answer

It can, but FHA appraisals are strict. Older homes with deferred maintenance may need repairs before FHA will fund the loan.

Question 4

What credit score do I need for conventional?

Accepted Answer

Most lenders require 620 minimum. But your rate improves significantly at 700 and above — that's where conventional really outperforms FHA.

Question 5

Is the FHA down payment really only 3.5%?

Accepted Answer

Yes, if your credit score is 580 or higher. Drop below 580 and FHA requires 10% down — at that point, the advantage shrinks fast.

Question 6

Which loan closes faster in San Benito County?

Accepted Answer

Conventional typically closes faster. FHA adds government-specific appraisal steps that can add days, especially on older or imperfect properties.

Conventional vs FHA Loans in San Juan Bautista