Question 1

Can I use FHA to buy a duplex in Simi Valley?

Accepted Answer

Yes. FHA allows 2-4 unit properties if you live in one unit. Conventional also allows this, but FHA is more flexible on credit and down payment.

Question 2

Which loan has lower rates — conventional or FHA?

Accepted Answer

FHA rates are often slightly lower. But once you add MIP, the total monthly cost can exceed a conventional loan. Rates vary by borrower profile and market conditions.

Question 3

Does FHA mortgage insurance ever go away?

Accepted Answer

Not automatically. If you put less than 10% down on an FHA loan, MIP stays for the life of the loan. You'd need to refinance to remove it.

Question 4

What credit score do I need for conventional in Ventura County?

Accepted Answer

Most conventional lenders require 620 minimum. But the best pricing starts at 740+. Below 680, FHA often gets you a better total payment.

Question 5

Is the down payment difference really that significant?

Accepted Answer

Both allow as little as 3-3.5% down. The real difference is what happens to mortgage insurance over time — conventional lets you cancel it.

Question 6

Can I switch from FHA to conventional later?

Accepted Answer

Yes, by refinancing. Most borrowers do this once they've built 20% equity. It eliminates MIP and can lower the monthly payment significantly.

Conventional vs FHA Loans in Simi Valley