Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once you have enough equity and your credit qualifies, you can refinance into a conventional loan and drop mortgage insurance.

Question 2

Which loan is easier to get approved for?

Accepted Answer

FHA has more flexible credit and debt-to-income requirements. It's the more accessible option for buyers still building their credit profile.

Question 3

Does FHA or conventional have higher loan limits in San Bernardino County?

Accepted Answer

Both programs set county-level limits. Check current limits before assuming a higher-priced Redlands home fits either program.

Question 4

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require at least 620. Better rates kick in above 700, and the best pricing typically starts around 740.

Question 5

Is the FHA down payment really just 3.5%?

Accepted Answer

Yes, if your score is 580 or above. Drop below 580 and FHA requires 10% down. Below 500, FHA won't approve you at all.

Question 6

Which loan has lower monthly payments?

Accepted Answer

It depends. FHA's lower rate can offset its MIP cost, but conventional without PMI usually wins on monthly cost long-term.

Conventional vs FHA Loans in Redlands, CA