Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, you can refinance from FHA to conventional once you build 20% equity and improve your credit. This eliminates mortgage insurance and often lowers your monthly payment.

Question 2

Which loan type closes faster in Daly City?

Accepted Answer

Both programs take similar time to close, usually 30-45 days. Your documentation readiness matters more than loan type. Complete applications process quicker regardless of program choice.

Question 3

Do both loans work for condos in Daly City?

Accepted Answer

Yes, but FHA requires the condo project to have FHA approval. Conventional loans accept more condo projects without special certification. Check project status before making offers.

Question 4

How much does FHA mortgage insurance actually cost monthly?

Accepted Answer

Annual MIP typically runs 0.55% of your loan balance, divided into monthly payments. On a $600,000 loan, expect about $275 monthly for mortgage insurance premiums.

Question 5

Will my down payment amount affect my interest rate?

Accepted Answer

Yes, larger down payments typically earn lower rates on conventional loans. FHA rates stay more consistent regardless of down payment size. Rates vary by borrower profile and market conditions.

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