Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinancing from FHA to conventional is common once you build 20% equity and meet credit requirements. This eliminates ongoing mortgage insurance and often reduces monthly payments.

Question 2

Which loan type closes faster in South San Francisco?

Accepted Answer

Both programs typically close in similar timeframes. Processing speed depends more on your documentation readiness and lender efficiency than the specific loan type you choose.

Question 3

Do South San Francisco sellers prefer conventional offers?

Accepted Answer

Some sellers view conventional financing as slightly stronger due to perceived reliability. However, FHA pre-approval from a reputable lender carries significant weight in competitive situations.

Question 4

What credit score do I need for each program?

Accepted Answer

FHA often accepts scores as low as 580 for minimum down payments. Conventional loans typically require 620 minimum, with better rates available above 680-700.

Question 5

Can I use either loan for a San Mateo County investment property?

Accepted Answer

Conventional loans allow investment property purchases with higher down payments. FHA requires owner-occupancy, so it only works for your primary residence in South San Francisco.

Conventional vs FHA Loans in South San Francisco: Which Fits Your Home Purchase?