Question 1

Does FHA mortgage insurance ever drop off?

Accepted Answer

Only if you put down 10% or more—then it drops after 11 years. Below 10% down, it stays for the full 30-year term unless you refinance.

Question 2

Can I use FHA in Half Moon Bay's high-cost market?

Accepted Answer

Yes. San Mateo County FHA limits reach $1,209,750 for single-family homes as of 2026. That covers most coastal properties outside luxury tiers.

Question 3

Which loan type works better for 5% down?

Accepted Answer

Conventional costs less long-term if your credit exceeds 720. FHA wins with lower scores or when you need maximum seller concessions.

Question 4

How much does FHA upfront mortgage insurance add to my loan?

Accepted Answer

1.75% of the loan amount, typically rolled into your mortgage. On a $600k loan, that's $10,500 added to your principal balance.

Question 5

Can I refinance FHA to conventional later?

Accepted Answer

Yes, once you hit 20% equity and meet conventional credit standards. Most borrowers refinance within 3-5 years to eliminate FHA insurance.

Conventional vs FHA Loans in Half Moon Bay: Which Coastal Loan Fits Your Budget?