Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, you can refinance from an FHA loan to conventional once you build equity and improve your credit. This removes permanent mortgage insurance and often reduces your monthly payment.

Question 2

Which loan type closes faster in San Mateo?

Accepted Answer

Conventional loans often close slightly faster because they have fewer government-required steps. However, both typically close within 30-45 days with experienced lenders.

Question 3

Do conventional loans always have better rates?

Accepted Answer

Not always. FHA rates can be competitive, especially for borrowers with lower credit scores. Rates vary by borrower profile and market conditions for both loan types.

Question 4

Can I use either loan type for a San Mateo condo?

Accepted Answer

Both work for condos, but FHA requires the complex to be FHA-approved. Conventional financing offers more flexibility with condo projects and homeowner associations.

Question 5

Which has lower closing costs?

Accepted Answer

Conventional loans often have lower overall closing costs. FHA charges an upfront mortgage insurance premium of 1.75% of the loan amount, which adds to initial expenses.

Conventional vs FHA Loans in San Mateo: Which Mortgage Fits Your Needs?