Question 1

Which loan has a lower down payment in Porterville?

Accepted Answer

FHA requires 3.5% down with 580+ credit. Conventional can go as low as 3% but typically requires stronger credit to qualify at that level.

Question 2

Can I cancel mortgage insurance on an FHA loan?

Accepted Answer

Not easily. FHA MIP typically lasts the life of a 30-year loan. To remove it, most borrowers refinance into a conventional loan once they have enough equity.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Most conventional lenders require 620 minimum. Better pricing kicks in around 680, and the best rates typically go to borrowers at 740 or above.

Question 4

Does FHA work on fixer-uppers in Tulare County?

Accepted Answer

Standard FHA requires the home to meet basic condition standards. A 203k rehab loan is available for properties needing significant work.

Question 5

Which loan is faster to close in Porterville?

Accepted Answer

Conventional loans often close faster. FHA requires an FHA appraisal, which can add time if the property has condition issues flagged by the appraiser.

Question 6

Can I use gift funds for my down payment?

Accepted Answer

Yes on both loans. FHA allows 100% of the down payment to come from a gift. Conventional has more restrictions depending on the loan-to-value ratio.

Conventional vs FHA Loans in Porterville, CA