Question 1

Can I switch from FHA to conventional later?

Accepted Answer

Yes — refinancing into conventional removes FHA mortgage insurance once you have enough equity. Many buyers start FHA and refinance within a few years.

Question 2

Which loan is faster to close?

Accepted Answer

Conventional loans typically close faster. FHA requires an FHA appraisal, which can add time if the property needs repairs.

Question 3

Does FHA work for condos in West Sacramento?

Accepted Answer

Only if the condo complex is FHA-approved. Conventional loans have fewer restrictions on condo eligibility.

Question 4

What credit score gets the best conventional rate?

Accepted Answer

Conventional pricing improves significantly at 740 and above. Below 680, FHA often offers a more competitive effective rate. Rates vary by borrower profile and market conditions.

Question 5

Is the FHA down payment really only 3.5%?

Accepted Answer

Yes, with a 580+ score. Drop below 580 and lenders require 10% down. Gift funds are allowed for the down payment on FHA loans.

Question 6

Which loan handles seller concessions better?

Accepted Answer

FHA allows up to 6% in seller concessions. Conventional caps concessions at 3% for down payments under 10%. That gap matters in a slow market.

Conventional vs FHA Loans in West Sacramento