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in Clovis, CA
Most Clovis buyers choosing between conventional and FHA loans focus on the wrong thing. The down payment difference matters less than total cost over five years.
We see about 60% of first-time Clovis buyers start with FHA, then switch to conventional after running the numbers. The right choice depends on your credit score and how long you'll keep the loan.
Conventional loans require 3-20% down and at least 620 credit. You pay mortgage insurance only if you put down less than 20%, and it drops off automatically at 78% loan-to-value.
Clovis buyers with 680+ credit usually save money with conventional financing. The rates beat FHA when your score is decent, and you avoid lifetime mortgage insurance.
FHA loans allow 3.5% down with 580 credit and charge mortgage insurance for the loan's life. You pay 1.75% upfront plus 0.55-0.85% annually, regardless of equity.
These loans work for Clovis buyers with credit damage or tight cash. The flexible underwriting approves profiles that conventional lenders reject outright.
Credit scores below 680 usually favor FHA because conventional pricing hits you hard in that range. Above 700, conventional wins on rate and insurance costs combined.
FHA mortgage insurance never drops off unless you refinance. On a $400K Clovis home, that's about $2,800 yearly you keep paying even at 50% equity. Conventional stops charging at 78% loan-to-value automatically.
Debt-to-income limits give FHA more room. Conventional maxes around 45%, while FHA stretches to 50% with compensating factors. That extra 5% gets deals approved.
Choose FHA if your credit sits between 580-680 or you need the higher debt ratio. Plan to refinance to conventional within three years once your score improves.
Go conventional with 680+ credit and stable income. You'll pay less monthly and drop insurance faster. The 5% down conventional loan beats 3.5% down FHA for most Clovis buyers in this range.
Yes, with 620+ credit. You'll pay mortgage insurance until you reach 78% loan-to-value, then it drops off automatically.
Not unless you refinance to conventional. FHA charges insurance for the entire loan term regardless of your equity position.
FHA accepts 580 credit and recent collections. Conventional requires 620 minimum and cleaner credit history overall.
Usually 680 or higher. Below that, FHA's flat pricing often beats conventional's risk-based adjustments.
No, FHA requires owner occupancy. You need conventional financing for investment properties in Clovis.