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in Danville, CA
Danville buyers choosing between conventional and FHA loans face a real tradeoff. Conventional requires more down payment but avoids mortgage insurance above 80% LTV.
FHA opens the door with 3.5% down but carries insurance costs for the loan's life if you put down less than 10%. The county median household income is $125,727, which supports purchases well into the conforming range.
Contra Costa County is seeing major infrastructure investment. The new East County Service Center in nearby Brentwood signals growth in the region.
Conventional at 6.25% works best when you have solid savings. At 80% LTV with 740 FICO, the monthly P&I payment is $4,618 and PMI drops off entirely.
Conventional underwriting demands documented income and two years of work history. Lenders typically want 6 to 12 months of reserves beyond your down payment.
FHA at 5.875% opens doors for buyers with modest savings. At 96.5% LTV with 740 FICO, the monthly P&I payment is $4,437.
FHA mortgage insurance (MIP) runs for the life of the loan when you put down less than 10%. The upfront MIP is 1.75% of the loan amount, rolled into your balance.
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 Danville.
Danville buyers choosing between conventional and FHA loans face a real tradeoff. Conventional requires more down payment but avoids mortgage insurance above 80% LTV.
FHA opens the door with 3.5% down but carries insurance costs for the loan's life if you put down less than 10%. The county median household income is $125,727, which supports purchases well into the conforming range.
Contra Costa County is seeing major infrastructure investment. The new East County Service Center in nearby Brentwood signals growth in the region.
The down-payment gap is the biggest difference. Conventional demands 20% down to skip PMI; FHA lets you start with 3.5%.
Mortgage insurance is the second major split. Conventional PMI cancels at 78% LTV automatically and can be requested at 80% LTV. FHA's MIP sticks around for the life of the loan if you put down under 10%.
The rate difference favors FHA here. At 5.875% versus 6.25%, FHA's lower rate offsets some of the insurance cost. Conventional's PMI ends, while FHA's MIP never does unless you refinance out.
Pick conventional if you've saved 20% down and plan to stay 10+ years. Your PMI disappears, and you avoid decades of insurance premiums.
Pick FHA if you're a first-time buyer with limited savings and good credit. You'll move faster, keep cash in reserve, and the lower rate helps offset the insurance cost.
Conventional at 6.25% on a $750,000 loan runs $4,618 monthly P&I. FHA at 5.875% is $4,437—$181 less. FHA's lower payment includes lifetime mortgage insurance if you put down under 10%.
Yes. At 80% LTV (20% down), conventional loans have zero PMI. Below 80% LTV, PMI applies. PMI cancels automatically at 78% LTV.
No. FHA's minimum down payment is 3.5% with a 580+ FICO score. Some lenders may require 600+ FICO or 640+ FICO depending on their overlays.
If you put down less than 10%, FHA MIP runs for the life of the loan. With 10% or more down, MIP cancels after 11 years of on-time payments.
FHA. With 3.5% down, you keep significantly more cash in reserve than conventional's 20% down requirement. That flexibility matters if you need funds for closing costs.