Question 1

Can I avoid mortgage insurance with FHA?

Accepted Answer

Not easily. Most FHA borrowers pay MIP for the life of the loan. Refinancing into a conventional loan is the main exit.

Question 2

Which loan has a lower down payment?

Accepted Answer

Both offer 3% to 3.5% down options. FHA allows 3.5% down at 580 credit. Conventional's 3% option needs stronger credit.

Question 3

Does FHA or conventional close faster?

Accepted Answer

Conventional loans often move faster. FHA requires a stricter property appraisal, which can slow things down.

Question 4

What credit score do I need for conventional?

Accepted Answer

Most lenders want at least 620. Better rates kick in at 740 and above.

Question 5

Can I use either loan to buy in Tulare?

Accepted Answer

Yes. Both work for primary residences in Tulare. Conventional also covers investment properties; FHA does not.

Question 6

Which loan is better for first-time buyers?

Accepted Answer

FHA fits buyers with lower credit or thin savings. Conventional can work if your credit is strong and you have more down.

Conventional vs FHA Loans in Tulare, CA