Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once you have enough equity, you can refinance into a conventional loan and drop mortgage insurance. Many buyers use FHA to get in the door, then refinance.

Question 2

Which loan is faster to close?

Accepted Answer

Conventional loans typically close faster. FHA appraisals require more property condition checks, which can slow things down.

Question 3

Does FHA work for investment properties?

Accepted Answer

No. FHA requires you to occupy the home as your primary residence. Conventional loans allow investment properties.

Question 4

What credit score gets the best conventional rate?

Accepted Answer

Lenders price conventional loans best at 740 and above. Rates vary by borrower profile and market conditions.

Question 5

Is the FHA down payment really just 3.5%?

Accepted Answer

Yes, at a 580+ credit score. Drop below 580 and you need 10% down. The 3.5% minimum applies to most FHA buyers.

Question 6

Which loan fits a fixer-upper in Twentynine Palms?

Accepted Answer

FHA has a 203k rehab option built for fixer-uppers. Standard conventional loans require the home to be in livable condition at closing.

Conventional vs FHA Loans in Twentynine Palms