Question 1

Can I use FHA to buy in Santa Clara?

Accepted Answer

Yes, FHA loans work in Santa Clara County. Just confirm the purchase price falls within the county's FHA loan limit before assuming it fits.

Question 2

Does conventional always have lower rates than FHA?

Accepted Answer

Not always. Rates vary by borrower profile and market conditions. Buyers with lower credit scores often see better rates via FHA despite the MIP cost.

Question 3

How do I avoid FHA mortgage insurance?

Accepted Answer

Put 20% down and go conventional. That's the cleanest way to eliminate monthly mortgage insurance from your payment entirely.

Question 4

What credit score do I need for conventional?

Accepted Answer

Most conventional lenders require 620 minimum. Better rates kick in at 740+. Below 620, FHA is usually your only option.

Question 5

Can I switch from FHA to conventional later?

Accepted Answer

Yes — refinancing from FHA to conventional is common once equity and credit improve. It's often the fastest way to drop MIP.

Question 6

Which loan closes faster in Santa Clara?

Accepted Answer

Conventional typically closes faster. FHA requires an appraisal with specific condition requirements, which can slow things down in competitive situations.

Conventional vs FHA Loans in Santa Clara, CA