Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinancing to conventional drops MIP once you hit 20% equity. Most borrowers do this after 2-3 years of appreciation or paydown.

Question 2

Does FHA cost more than conventional in Millbrae?

Accepted Answer

Usually yes, but not always. Lower credit borrowers pay higher conventional rates. FHA can be cheaper if your score sits below 640.

Question 3

Which loan type closes faster?

Accepted Answer

Conventional typically moves quicker. FHA appraisals take longer and require more property repairs before closing.

Question 4

Can I use both loan types for investment properties?

Accepted Answer

No. FHA requires owner occupancy. Conventional works for rentals but demands higher down payments and reserves.

Question 5

Do both loans work on Millbrae condos?

Accepted Answer

Yes, if the complex is approved. FHA maintains a stricter condo approval list than conventional lenders.

Conventional vs FHA Loans in Millbrae: Which Fits Your Budget?