Question 1

Can I refinance from FHA to conventional later?

Accepted Answer

Yes. Once you build enough equity and your credit improves, refinancing into conventional removes the permanent MIP. Many Montclair buyers do this after 2–3 years.

Question 2

Which loan has a lower down payment requirement?

Accepted Answer

FHA allows 3.5% down with a 580 score. Conventional can go as low as 3%, but typically requires stronger credit to get there.

Question 3

Does FHA or conventional close faster?

Accepted Answer

Conventional loans often close faster. FHA requires a specific appraisal process that can add time if the property has condition issues.

Question 4

Are FHA loan limits the same across California?

Accepted Answer

No. Limits are set by county. San Bernardino County has its own FHA limit — confirm the current figure before setting your purchase price.

Question 5

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

Accepted Answer

FHA 203k lets you finance repairs into the loan. Standard conventional loans don't. If the home needs work, FHA rehab programs have a real edge.

Question 6

Do both loans require mortgage insurance?

Accepted Answer

Not always. Conventional loans drop PMI at 20% equity. FHA charges MIP upfront and monthly — often for the entire loan term.

Conventional vs FHA Loans in Montclair, CA