Question 1

Can I use FHA to buy in Portola Valley?

Accepted Answer

Yes, but only if the property costs under $498,257 or you're putting down enough to stay within that limit. Most homes here exceed FHA's loan ceiling.

Question 2

What credit score do I need for conventional?

Accepted Answer

Minimum is 620, but you'll get better rates at 700+. FHA accepts 580, though some lenders require 600.

Question 3

Does FHA mortgage insurance ever cancel?

Accepted Answer

Not on most loans. You'll pay MIP monthly until you refinance to conventional or sell. Conventional PMI drops at 20% equity.

Question 4

Which loan type costs less long-term?

Accepted Answer

Conventional wins if you have decent credit. FHA's permanent mortgage insurance stacks up to tens of thousands in extra costs over 30 years.

Question 5

Can I refinance from FHA to conventional later?

Accepted Answer

Yes, once you hit 20% equity and your credit improves. That's the main strategy for ditching FHA's permanent MIP.

Conventional vs FHA Loans in Portola Valley: Which Fits Your Budget?