Question 1

Can I use a conventional loan with just 3% down in Mountain View?

Accepted Answer

Yes, conventional loans allow 3% down for first-time buyers and repeat buyers on certain programs. You'll pay PMI but avoid FHA's upfront insurance charge.

Question 2

Does FHA actually approve lower credit scores than conventional lenders require?

Accepted Answer

FHA guidelines allow 580 credit, but most lenders overlay 620-640 minimums. Conventional typically starts at 620 with some going to 600 for strong compensating factors.

Question 3

How much does FHA mortgage insurance add to my monthly payment?

Accepted Answer

Expect 0.55-0.85% of your loan balance annually, or $460-710 monthly on a $1M loan. Conventional PMI costs less and cancels at 20% equity.

Question 4

Will conventional rates drop more than FHA rates when the Fed cuts later this year?

Accepted Answer

Both move with broader rate trends, but the spread between them stays relatively constant. Conventional still prices 0.25-0.50% better for strong credit.

Question 5

Can tech stock compensation help me qualify for a bigger conventional loan?

Accepted Answer

Yes, lenders count RSUs and options as income after 2-year history. This often pushes tech workers into conventional territory versus FHA limits.

Question 6

Should I wait for Fed rate cuts to refinance my FHA loan to conventional?

Accepted Answer

Refinance when you hit 20% equity, regardless of rates. Dropping FHA insurance saves more than timing rate movements perfectly.

Conventional vs FHA Loans in Mountain View: Which Tech Hub Mortgage Fits Your Budget?