Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes, refinance to conventional once you reach 20% equity to drop mortgage insurance. Most borrowers do this within 5-7 years as home values rise.

Question 2

Which loan type closes faster in Milpitas?

Accepted Answer

Both take 25-35 days typically. FHA appraisals sometimes delay closing if repairs are needed, but conventional isn't automatically faster.

Question 3

Do Milpitas sellers prefer conventional offers?

Accepted Answer

Some agents assume FHA means weaker buyers or appraisal issues. Strong pre-approval and earnest money matter more than loan type in competitive situations.

Question 4

What credit score do I realistically need for conventional?

Accepted Answer

620 is the floor, but you'll pay heavily below 680. Aim for 700+ to access reasonable rates and avoid excessive lender fees.

Question 5

Does FHA work for Milpitas condos?

Accepted Answer

Yes, if the complex is FHA-approved. Many newer developments qualify, but older conversions sometimes don't meet certification requirements.

Question 6

How much is PMI on a conventional loan?

Accepted Answer

Typically 0.30-1.50% annually depending on credit and down payment. A 5% down loan might cost $200-400 monthly until you hit 78% LTV.

Conventional vs FHA Loans in Milpitas: Which Mortgage Fits Your Silicon Valley Budget?