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in Walnut Creek, CA
Walnut Creek sits in Contra Costa County, where the median household income is $125,727 and new county service infrastructure is expanding.
Both programs work in Walnut Creek up to the 2026 conforming limit of $1,249,125. The real difference isn't the loan amount — it's the down payment floor and the monthly cost of mortgage insurance or mortgage insurance premium.
Conventional loans let you put as little as 3% down in Walnut Creek. You'll pay private mortgage insurance (PMI) until you hit 80% loan-to-value, at which point it drops off entirely. That's the core appeal — PMI is temporary.
The trade-off: conventional lenders typically want a 620 FICO minimum, though 640+ gets better pricing. If you're putting down less than 20%, expect PMI to add $100 to $300 monthly depending on your loan size and credit score.
FHA loans also start at 3.5% down in Walnut Creek, but the mortgage insurance premium (MIP) works differently. You pay an upfront MIP at closing, then annual MIP on your monthly payment for the entire loan term — it doesn't cancel.
FHA accepts credit scores as low as 580 and is more flexible on income documentation. The permanent MIP is the catch. On a typical loan, that adds $150 to $250 monthly for 30 years.
The biggest gap is mortgage insurance. Conventional PMI vanishes at 80% LTV; FHA's MIP never does. On a 30-year loan, that's a meaningful cost difference. Conventional wins if you can reach 80% equity within 5–10 years through payments or appreciation.
Down payment is nearly identical (3% vs 3.5%), so that's not the decider. Credit score is: FHA opens the door to 580 FICO buyers; conventional wants 620 minimum. If your credit is below 620, FHA is your only path.
Pick conventional if you have a 640+ FICO and plan to stay in the home or refinance within 7–10 years. Your PMI disappears once you hit 80% equity.
Choose FHA if your credit is below 620 or you need maximum flexibility on income verification. You'll pay MIP for the life of the loan, but FHA closes faster and doesn't penalize you for recent credit events.
No. Conventional loans require a 620 FICO minimum. If your score is 600–619, FHA at 580 FICO is your option. Work on raising your score 20 points, or apply for FHA now and refinance to conventional later.
Yes. PMI cancels automatically when you reach 80% loan-to-value through a combination of payments and home appreciation. On FHA, mortgage insurance premium never cancels — it stays for the full 30 years.
Depends on your credit and down payment. Conventional PMI typically runs $100–$300 monthly but disappears. FHA MIP runs $150–$250 monthly for 30 years. If you plan to stay 7+ years, conventional usually wins. Shorter timeline favors FHA.
Yes. Conventional accepts 3% down; FHA accepts 3.5% down. The difference is tiny. The real cost difference is insurance: conventional PMI cancels at 80% LTV, FHA MIP never does.
No — FHA typically closes faster. FHA underwriting is more straightforward and forgiving on income gaps. Conventional can take longer if your employment or income history is complex.