Question 1

Can I use an FHA loan to buy in Saratoga?

Accepted Answer

Yes, but loan limits apply. Many Saratoga homes exceed FHA's Santa Clara County cap, so check the limit before assuming FHA will cover your purchase price.

Question 2

Does conventional always have a lower rate than FHA?

Accepted Answer

Not always. Borrowers with lower credit scores often get better pricing through FHA. Strong credit — above 720 — typically favors conventional rates. Rates vary by borrower profile and market conditions.

Question 3

Can I cancel FHA mortgage insurance later?

Accepted Answer

On most FHA loans made after 2013, MIP lasts the life of the loan. The only way out is refinancing into a conventional loan once you have enough equity.

Question 4

What's the minimum down payment for each loan?

Accepted Answer

FHA requires 3.5% down with a 580+ credit score. Conventional goes as low as 3% down, but PMI applies until you reach 20% equity.

Question 5

Which loan is harder to get approved for?

Accepted Answer

Conventional is stricter on credit and income documentation. FHA allows lower scores and higher debt-to-income ratios, making it more accessible for some borrowers.

Question 6

Do both loans work for condos in Saratoga?

Accepted Answer

Conventional approves most condos with standard review. FHA requires the condo project to be on an approved list, which limits your options in many Saratoga buildings.

Conventional vs FHA Loans in Saratoga, CA