Question 1

Can I use FHA with 5% down instead of 3.5%?

Accepted Answer

Yes, any down payment above 3.5% works with FHA. Larger down payments lower your loan amount but don't change the insurance structure or rates significantly.

Question 2

Does conventional always have lower rates than FHA?

Accepted Answer

Not always. FHA rates sometimes match or beat conventional depending on your credit tier. We shop both to find your best pricing.

Question 3

Will FHA insurance really never drop off?

Accepted Answer

Correct for loans after 2013 with under 10% down. The only way to remove it is refinancing to a conventional loan once you qualify.

Question 4

Can I qualify for conventional with 5% down?

Accepted Answer

Yes, conventional allows 5% down for primary residences. You'll pay PMI until you reach 20% equity through payments or appreciation.

Question 5

Which loan type closes faster in East Palo Alto?

Accepted Answer

Both close in 21-30 days typically. FHA requires an FHA appraisal that sometimes flags property issues, which can extend timelines if repairs are needed.

Conventional vs FHA Loans in East Palo Alto: Which Gets You In?