Question 1

Which loan has lower mortgage insurance costs?

Accepted Answer

Conventional PMI can be canceled at 20% equity. FHA mortgage insurance typically lasts the life of the loan, costing more over time.

Question 2

Can I use FHA to buy in San Diego with a low credit score?

Accepted Answer

Yes. FHA allows 580 credit with 3.5% down. That's the most accessible entry point in a high-cost market like San Diego.

Question 3

What's the down payment difference?

Accepted Answer

Conventional goes as low as 3% for qualified buyers. FHA starts at 3.5% with a 580 score.

Question 4

Do loan limits apply to both programs?

Accepted Answer

Yes. Both conventional and FHA have county-level limits. San Diego County limits are higher than national baselines — confirm current figures before shopping.

Question 5

Which loan is better for a first-time buyer in San Diego?

Accepted Answer

Depends on your credit and savings. FHA is more forgiving on both. Conventional costs less long-term if you qualify.

Question 6

Can I refinance from FHA into a conventional loan later?

Accepted Answer

Yes. Once you build enough equity and improve your credit, refinancing out of FHA removes the permanent mortgage insurance.

Conventional vs FHA Loans in San Diego