Question 1

Can I use an FHA loan to buy in Los Altos Hills?

Accepted Answer

Technically yes, but FHA loan limits in Santa Clara County may not cover local home prices. You'd need to make up the gap in cash.

Question 2

Which loan has lower monthly payments?

Accepted Answer

Conventional typically wins for strong borrowers. No upfront MIP and cancellable PMI keep long-term costs lower.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Lenders require at least 620. But you'll see the best rates at 740 or above — that's where conventional really pulls ahead of FHA.

Question 4

Does FHA mortgage insurance ever go away?

Accepted Answer

On most FHA loans, MIP stays for the life of the loan. The only exit is refinancing into a conventional loan once you have enough equity.

Question 5

Can I put less than 5% down on a conventional loan?

Accepted Answer

Yes — some conventional programs allow 3% down. You'll pay PMI, but it cancels once you reach 20% equity, unlike FHA MIP.

Question 6

Which loan closes faster?

Accepted Answer

Conventional loans often close faster. FHA requires an FHA appraisal with stricter property condition standards, which can slow things down.

Conventional vs FHA Loans in Los Altos Hills