Question 1

Can I use FHA to buy a multi-unit property in El Cajon?

Accepted Answer

Yes. FHA allows up to 4-unit properties if you live in one unit. Rental income from other units can help you qualify.

Question 2

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

Accepted Answer

Conventional conforming limits typically run higher than FHA limits. Check current county limits before assuming FHA covers your purchase price.

Question 3

Which loan is easier to get approved for?

Accepted Answer

FHA is more flexible on credit and debt ratios. Conventional sets a higher bar but costs less for well-qualified borrowers.

Question 4

When does FHA mortgage insurance go away?

Accepted Answer

On most FHA loans with less than 10% down, MIP stays for the life of the loan. Put down 10%+ and it drops after 11 years.

Question 5

Can I switch from FHA to conventional later?

Accepted Answer

Yes — refinancing into conventional once you hit 20% equity is a common move. It eliminates the ongoing MIP cost.

Question 6

Which loan type is better for a seller's market?

Accepted Answer

Conventional offers are sometimes preferred by sellers. Some sellers view FHA appraisal requirements as a risk to the deal.

Conventional vs FHA Loans in El Cajon, CA