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in Union City, CA
Union City sits in Alameda County, where the median household income is $126,240 and new restaurants keep opening across the East Bay. Conventional and FHA both work here, but they split on down payment and mortgage insurance.
The choice comes down to how much you have saved and how long you plan to stay. Conventional wins at 20% down with no PMI. FHA opens the door with 3.5% down but carries mortgage insurance for the life of the loan.
Conventional at 6.25% works when you have substantial savings. At 80% LTV with $187,500 down on a $937,500 purchase, the payment is $4,618 with zero PMI.
Underwriting wants documented income and two years of work history. You'll need a 740 FICO or higher and reserves beyond the down payment. PMI cancels automatically at 78% LTV under the Homeowners Protection Act.
FHA at 5.875% opens the door with just 3.5% down. On the same $750,000 loan amount, the payment is $4,437 with mortgage insurance included.
The catch: MIP runs for the life of the loan when down payment is under 10%. You'll need a 580 FICO minimum and a 740 FICO here. Upfront MIP of 1.75% rolls into the loan amount.
Local decision guide
Use this comparison to weigh Conventional Loans and FHA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Union City.
Union City sits in Alameda County, where the median household income is $126,240 and new restaurants keep opening across the East Bay. Conventional and FHA both work here, but they split on down payment and mortgage insurance.
The choice comes down to how much you have saved and how long you plan to stay. Conventional wins at 20% down with no PMI. FHA opens the door with 3.5% down but carries mortgage insurance for the life of the loan.
Conventional at 6.25% works when you have substantial savings. At 80% LTV with $187,500 down on a $937,500 purchase, the payment is $4,618 with zero PMI.
Conventional requires 20% down to skip PMI entirely. FHA lets you start with 3.5% down but charges mortgage insurance for the loan's life. That's the structural trade-off: more cash upfront versus a smaller down payment with permanent insurance.
The rate spread favors FHA here: 5.875% versus 6.25%. But FHA's lower rate doesn't offset the lifetime MIP cost on a 96.5% LTV loan. Conventional's higher rate disappears at 80% LTV when PMI ends.
Pick conventional if you have $187,500 saved for a $937,500 purchase. You'll skip PMI entirely at 80% LTV and build equity faster. The higher rate stings upfront but vanishes once you hit 78% LTV.
Choose FHA if you have limited savings but solid credit. With just $27,202 down on a $777,202 purchase, you're in the game. The lower rate and smaller down payment matter more than lifetime MIP when you're stretching to buy.
Conventional at 6.25% on a $750,000 loan is $4,618 P&I. FHA at 5.875% on the same loan is $4,437 P&I. FHA's rate is lower, but MIP is included in that payment.
Yes. At 80% LTV or higher, conventional has no PMI. Below 80% LTV, PMI applies. PMI cancels automatically at 78% LTV under federal law.
No. MIP runs for the life of the loan when down payment is under 10%. With 10% or more down, MIP cancels after 11 years. Above 90% LTV, MIP never cancels.
Conventional typically requires 740 FICO or higher. FHA accepts 580 FICO minimum, though 640+ is more common. Both have overlays that vary by lender.
Yes. Both conventional and FHA cap at $1,249,125 in 2026. Union City properties well below that limit work with either program.