Question 1

Which loan has a lower down payment in Patterson?

Accepted Answer

Both offer low down options. FHA requires 3.5% at 580+. Conventional goes as low as 3% but needs stronger credit.

Question 2

Can I drop mortgage insurance on an FHA loan?

Accepted Answer

Not easily. Most FHA loans carry MIP for the full loan term. Refinancing to conventional is the common exit strategy.

Question 3

Which loan is better for a first-time buyer in Patterson?

Accepted Answer

FHA is often the starting point with limited credit history. But if you qualify conventionally, compare total costs — not just the rate.

Question 4

Do FHA loans have stricter property requirements?

Accepted Answer

Yes. FHA appraisers flag safety and structural issues that conventional appraisals might overlook. Older homes can create delays.

Question 5

How does my credit score affect which loan I should choose?

Accepted Answer

Above 720, conventional pricing is hard to beat. Below 640, FHA usually gives you better terms and a real path to approval.

Question 6

Are loan limits the same for both programs in Stanislaus County?

Accepted Answer

No. FHA and conforming conventional limits are set separately by the FHFA and HUD. Check current Stanislaus County limits before you shop.

Conventional vs FHA Loans in Patterson, CA