Question 1

Can I refinance from FHA to conventional later?

Accepted Answer

Yes, once you have 20% equity and meet conventional credit standards. Most borrowers refinance within three to five years to drop FHA mortgage insurance.

Question 2

Which loan type offers lower monthly payments?

Accepted Answer

Conventional typically costs less monthly after you hit 20% equity. FHA payments stay higher due to permanent mortgage insurance premiums.

Question 3

Does FHA require a higher down payment for lower credit scores?

Accepted Answer

FHA requires 10% down for credit scores between 500 and 579. Most lenders set their own 580 minimum to allow the 3.5% option.

Question 4

Are property standards different between FHA and conventional?

Accepted Answer

FHA requires stricter property condition standards and appraisals. Homes need specific repairs completed before closing that conventional loans might waive.

Question 5

Which loan works better for Cotati's housing stock?

Accepted Answer

Both work fine for Cotati's mix of single-family homes and condos. FHA has condo approval requirements that conventional doesn't, so check project eligibility first.

Conventional vs FHA Loans in Cotati: Which Fits Your Budget?