Question 1

Which loan has a lower down payment in Escondido?

Accepted Answer

Both allow 3% to 3.5% down. FHA requires 3.5% at 580 credit. Conventional can go to 3% but needs stronger credit.

Question 2

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

Not on a 30-year FHA loan with 3.5% down. You'd need to refinance into a conventional loan to remove it.

Question 3

Which loan is easier to qualify for?

Accepted Answer

FHA. It accepts lower credit scores and higher debt-to-income ratios than most conventional guidelines allow.

Question 4

Does the property type affect which loan I can use?

Accepted Answer

Yes. FHA requires the home to meet specific condition standards. Fixer-uppers often fail FHA appraisals and need conventional financing.

Question 5

Which loan is cheaper over 30 years?

Accepted Answer

Conventional usually wins long-term. FHA's lifetime mortgage insurance adds thousands in extra cost over the life of the loan.

Question 6

Can I use either loan for a condo in Escondido?

Accepted Answer

Conventional works on most condos. FHA condos must be on an approved list — far fewer projects qualify.

Conventional vs FHA Loans in Escondido