Question 1

Can I avoid PMI with less than 20% down on a conventional loan?

Accepted Answer

No. Conventional loans require PMI until you reach 20% equity. Some lenders offer lender-paid PMI, but you pay through a higher rate instead.

Question 2

Does FHA mortgage insurance ever drop off automatically?

Accepted Answer

Only if you put down 10% or more at purchase. Otherwise it stays for the loan's life. Most borrowers refinance out once they hit 20% equity.

Question 3

Which loan type works better for Burlingame's price point?

Accepted Answer

FHA covers up to $1,149,825 here, enough for many properties. Conventional works for higher prices and costs less monthly if your credit is strong.

Question 4

How much does FHA upfront mortgage insurance cost?

Accepted Answer

1.75% of your loan amount, rolled into the mortgage. On a $1M loan, that adds $17,500 to your balance before you make the first payment.

Question 5

Can I use FHA if I've owned a home before?

Accepted Answer

Yes. FHA doesn't restrict repeat buyers. You just need to meet credit, income, and down payment requirements like any other borrower.

Question 6

What credit score gets me the best conventional rate?

Accepted Answer

740 or higher unlocks the lowest pricing. Every 20-point drop below that adds cost through higher rates or PMI premiums.

Conventional vs FHA Loans in Burlingame: Which Mortgage Fits Your Budget?