Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes. Once you have 20% equity and your credit improves, refinancing into conventional removes the MIP. Many Ojai buyers plan this from day one.

Question 2

Which loan has lower monthly payments?

Accepted Answer

It depends on your down payment and score. Conventional wins long-term if you avoid PMI. FHA can be cheaper upfront with less down.

Question 3

Does FHA work for non-primary residences?

Accepted Answer

No. FHA requires the home to be your primary residence. Conventional is your only option for second homes or investment properties.

Question 4

What credit score do I need for conventional?

Accepted Answer

Most lenders require at least 620. But the best rates go to borrowers at 740 and above.

Question 5

Is the FHA upfront premium refundable?

Accepted Answer

Partially, if you refinance into another FHA loan within three years. Otherwise, it's gone.

Question 6

Which loan closes faster in Ojai?

Accepted Answer

Conventional loans typically close faster. FHA requires additional property condition checks that can slow the process.

Conventional vs FHA Loans in Ojai, CA