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in Moraga, CA
Moraga buyers choosing between conventional and FHA loans face a real tradeoff. Conventional requires more down payment but avoids mortgage insurance entirely.
FHA opens the door with 3.5% down but carries insurance costs for the life of the loan if you put less than 10% down. County median household income sits at $125,727, giving Moraga strong purchasing power.
Conventional at 6.25% works best when you have substantial savings. At 80% LTV the monthly payment is $4,618 with zero PMI.
Underwriting requires 740+ FICO and solid income documentation. Plan on two years of work history and reserves beyond the down payment.
FHA at 5.875% pencils lower on the monthly payment. At 96.5% LTV the payment is $4,437, but mortgage insurance runs for the life of the loan.
FHA accepts 740 FICO and 3.5% down, opening the door for buyers with limited savings. Upfront mortgage insurance is 1.75% of 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 Moraga.
Moraga buyers choosing between conventional and FHA loans face a real tradeoff. Conventional requires more down payment but avoids mortgage insurance entirely.
FHA opens the door with 3.5% down but carries insurance costs for the life of the loan if you put less than 10% down. County median household income sits at $125,727, giving Moraga strong purchasing power.
Conventional at 6.25% works best when you have substantial savings. At 80% LTV the monthly payment is $4,618 with zero PMI.
The payment gap is $181 per month in FHA's favor, but that ignores mortgage insurance. FHA's MIP adds roughly $250-$300 monthly, flipping the advantage to conventional.
Down payment is the real divider. Conventional demands 20% saved; FHA needs just 3.5%. If you have the savings, conventional wins on total cost.
Pick conventional if you've saved 20% and earn above county median. Your payment stays clean at $4,618 with no insurance drag.
Choose FHA if your savings are under 10% down. The lower rate and payment offset MIP for the first few years.
Conventional at 80% LTV is $4,618 monthly. FHA at 96.5% LTV is $4,437 base, plus $250-$300 for mortgage insurance. Conventional wins on total monthly cost.
Yes. At 80% LTV or higher, conventional loans carry zero PMI. Below 80% LTV, PMI applies and cancels at 78% LTV automatically.
FHA's minimum is 3.5% down with 580+ FICO. Putting less means you'll need a different program or more savings.
Yes, but only if you put 10% or more down. Above 90% LTV, MIP runs for the life of the loan. Refinancing later becomes an option.
Both conventional and FHA accept 740 FICO in this scenario. Conventional typically floors at 620; FHA at 580. Lender overlays may require higher scores.