Question 1

Which loan has a lower down payment?

Accepted Answer

FHA allows 3.5% down with a 580+ score. Conventional goes as low as 3% but requires stronger credit to qualify.

Question 2

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

Not easily. FHA MIP typically lasts the full loan term. You'd need to refinance into a conventional loan to remove it.

Question 3

Which loan is harder to get approved for?

Accepted Answer

Conventional is stricter on credit and debt ratios. FHA allows higher DTI and is more forgiving of past credit problems.

Question 4

Are FHA rates lower than conventional rates?

Accepted Answer

FHA rates are often slightly lower. But lifetime MIP adds to FHA's true cost — compare total monthly payment, not just rate.

Question 5

Does the loan type affect my offer in Rancho Cucamonga?

Accepted Answer

Sellers sometimes prefer conventional offers. FHA has stricter property condition requirements that can complicate certain deals.

Question 6

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down, or 500 with 10% down. Conventional typically requires 620 minimum. Rates vary by borrower profile and market conditions.

Conventional vs FHA Loans in Rancho Cucamonga