Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once you build enough equity, you can refinance into a conventional loan and drop the mortgage insurance. Many Lathrop buyers do this.

Question 2

Which loan has a lower down payment?

Accepted Answer

FHA requires 3.5% down with a 580 score. Conventional can go as low as 3%, but you typically need stronger credit to qualify.

Question 3

Does FHA cost more over time?

Accepted Answer

Usually yes. The upfront MIP plus lifetime monthly premiums add significant cost. Conventional PMI cancels once you hit 20% equity.

Question 4

What credit score do I need for each loan?

Accepted Answer

Conventional lenders require at least 620. FHA allows 580 with 3.5% down, or 500 with 10% down.

Question 5

Are FHA loan limits high enough in San Joaquin County?

Accepted Answer

FHA limits apply in San Joaquin County and may cap what you can borrow. Conventional limits are higher, which matters for pricier Lathrop homes.

Question 6

Which loan is easier to get approved for?

Accepted Answer

FHA is more flexible on credit and debt-to-income ratios. Conventional has tighter standards but fewer long-term insurance costs.

Conventional vs FHA Loans in Lathrop, CA