Question 1

Which loan has a lower down payment?

Accepted Answer

FHA allows 3.5% down at a 580 score. Conventional starts at 3% down but requires stronger credit.

Question 2

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

Not easily. FHA MIP typically lasts the life of the loan. Refinancing into conventional is usually the only exit.

Question 3

Does my credit score affect which loan is cheaper?

Accepted Answer

Absolutely. Above 700, conventional pricing beats FHA. Below 640, FHA rates and approvals are more accessible.

Question 4

Are FHA loan limits a concern in Santee?

Accepted Answer

San Diego County has higher FHA limits than most of California. Most Santee purchases fall within those limits.

Question 5

Which loan is faster to close?

Accepted Answer

Both can close in 30 days with a prepared borrower. FHA appraisals have stricter property condition standards, which can slow things.

Question 6

Can I use gift funds for the down payment?

Accepted Answer

Yes on both. FHA is more flexible — the entire down payment can come from a gift. Conventional has more rules.

Conventional vs FHA Loans in Santee, CA