Question 1

Can I use FHA to buy in Gilroy?

Accepted Answer

Yes. FHA loans work in Gilroy as long as the purchase price stays within Santa Clara County's FHA loan limit. Check current limits before you shop.

Question 2

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require at least 620. Better rates kick in around 740 and above.

Question 3

Does FHA mortgage insurance ever go away?

Accepted Answer

Not if you put less than 10% down. With 10% or more down, MIP drops after 11 years.

Question 4

Which loan has a lower down payment?

Accepted Answer

FHA requires 3.5% with a 580 credit score. Conventional goes as low as 3%, but you'll need stronger credit to qualify.

Question 5

Are conventional rates lower than FHA rates?

Accepted Answer

For strong credit profiles, yes. For borrowers near the minimum, FHA can price better. Rates vary by borrower profile and market conditions.

Question 6

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Many borrowers refinance into conventional once they hit 20% equity. That move removes mortgage insurance and can lower your payment.

Conventional vs FHA Loans in Gilroy, CA