Question 1

Which loan has lower monthly payments in Cupertino?

Accepted Answer

Conventional usually wins long-term. FHA's permanent MIP adds cost even after years of payments.

Question 2

Can I use FHA to buy a high-priced Cupertino home?

Accepted Answer

FHA loan limits apply in Santa Clara County. Many Cupertino homes exceed those limits, making conventional the only option.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Lenders require at least 620. You'll get meaningfully better rates at 740 or above.

Question 4

Does FHA allow lower down payments than conventional?

Accepted Answer

Yes. FHA allows 3.5% down at 580+ credit. Conventional can go as low as 3% but requires stronger credit.

Question 5

Can I cancel FHA mortgage insurance later?

Accepted Answer

Not on most FHA loans. You'd need to refinance into a conventional loan once you've built enough equity.

Question 6

Which loan closes faster in a competitive market?

Accepted Answer

Conventional typically closes faster. FHA appraisals have stricter property condition requirements that can slow things down.

Conventional vs FHA Loans in Cupertino, CA