Question 1

Can I use an FHA loan on a higher-priced Morgan Hill home?

Accepted Answer

FHA limits in Santa Clara County cap your loan amount. On pricier homes, conventional financing usually gives you more room.

Question 2

Does FHA mortgage insurance ever go away?

Accepted Answer

Not automatically. FHA MIP stays for the life of the loan if you put less than 10% down. Refinancing to conventional removes it.

Question 3

Which loan has a lower down payment?

Accepted Answer

FHA allows 3.5% down with a 580 score. Conventional goes as low as 3% but requires stronger credit to qualify at that level.

Question 4

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require 620 minimum. Better rates kick in around 740 and above — that's where conventional really pulls ahead of FHA.

Question 5

Is an FHA loan slower to close than conventional?

Accepted Answer

FHA requires a government-approved appraisal with stricter property standards. That can add time — especially on fixer-uppers.

Question 6

Can I have both an FHA and conventional loan at the same time?

Accepted Answer

Generally no — FHA is intended for primary residences only. Conventional loans have more flexibility for second homes and investment properties.

Conventional vs FHA Loans in Morgan Hill, CA