Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinancing from FHA to conventional is common once you build equity and improve your credit. This eliminates FHA mortgage insurance and often reduces your monthly payment.

Question 2

Which loan type has lower closing costs in Colma?

Accepted Answer

FHA typically has higher upfront costs due to the mortgage insurance premium, though this can be financed. Conventional closing costs vary by lender and down payment amount.

Question 3

Do both loans work for San Mateo County home prices?

Accepted Answer

Yes, though conventional loans offer higher limits in San Mateo County. FHA caps at $1,149,825 for 2024, while conventional goes to $1,149,825 for conforming loans.

Question 4

How much better does my credit need to be for conventional?

Accepted Answer

Most conventional lenders want 620 minimum, with best rates starting at 740+. FHA accepts 580 for 3.5% down and 500 for 10% down programs.

Question 5

Can I use both loan types for investment properties?

Accepted Answer

Conventional allows financing for investment properties with higher down payments. FHA requires owner occupancy and cannot be used for pure investment purchases.

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