Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once you build enough equity, you can refinance into a conventional loan and drop mortgage insurance. Many Etna buyers use FHA to get in, then refinance.

Question 2

Which loan has lower closing costs?

Accepted Answer

FHA has an upfront mortgage insurance premium of 1.75% of the loan. Conventional doesn't. FHA closing costs can run higher as a result.

Question 3

Does my debt-to-income ratio matter more for one loan?

Accepted Answer

FHA allows higher DTI ratios, sometimes up to 57%. Conventional lenders generally prefer 45% or below. FHA gives more room if you carry existing debt.

Question 4

Are FHA loan limits high enough in Siskiyou County?

Accepted Answer

FHA limits in Siskiyou County are set at the national baseline. Given Etna's price range, most buyers will stay well under that ceiling.

Question 5

What credit score gets me the best conventional rate?

Accepted Answer

Lenders price their best rates at 740 and above. Below 680, a conventional loan often costs more than FHA despite the lower rate headline.

Conventional vs FHA Loans in Etna, CA