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in Firebaugh, CA
Firebaugh buyers usually face a straightforward choice: conventional or FHA. Most first-time buyers lean FHA for the 3.5% down payment, while repeat buyers with equity go conventional to dodge mortgage insurance.
The gap matters more than you think. FHA charges insurance for life on most loans, while conventional drops it at 78% loan-to-value. On a 30-year loan, that's thousands in monthly savings once you hit 22% equity.
Conventional loans require 620+ credit and at least 5% down for most borrowers. Put down 20% and you skip private mortgage insurance entirely, which saves $150-$300 monthly on typical Firebaugh home prices.
Fannie Mae and Freddie Mac set the rules here. Loan limits hit $806,500 in Fresno County for 2025, enough for most local inventory. Rates typically beat FHA by 0.125-0.25% for borrowers with 720+ credit scores.
FHA accepts 580 credit with 3.5% down, or 500-579 credit with 10% down. That lower barrier gets more Firebaugh buyers qualified, especially those rebuilding credit or buying their first home.
You'll pay 1.75% upfront mortgage insurance plus 0.55-0.85% annually. On loans over 90% LTV, that annual premium never drops off unless you refinance. FHA caps at $644,000 in Fresno County, covering most local listings.
Credit score drives the biggest fork. Below 620, FHA is your only option. Between 620-700, FHA's forgiving ratios often make approval easier despite higher insurance costs. Above 720, conventional saves money long-term.
Down payment math changes the equation fast. That extra 1.5% to hit 5% conventional versus 3.5% FHA might feel steep now, but you'll recover it in lower monthly insurance within 24-36 months on most loan amounts.
Go FHA if your credit sits below 680 or you're scraping together 3.5% down. The insurance stings, but you'll refinance to conventional once you build 20% equity and boost your score. Most Firebaugh buyers make that jump within 4-6 years.
Choose conventional with 720+ credit and at least 5% down. You'll pay less monthly from day one, and PMI vanishes at 78% LTV without lifting a finger. For agricultural properties common around Firebaugh, conventional appraisers also handle rural comps better.
Yes, FHA approves rural homes on acreage if the property is primarily residential. Appraisers just need comparable sales within reasonable distance of Firebaugh.
Conventional typically closes 3-5 days faster since FHA requires additional property inspections. Both average 30-35 days total with clean appraisals.
Only if you put 10%+ down and wait 11 years, or refinance to conventional. Most borrowers refinance once they reach 20% equity instead.
Sellers can reject any offer, but FHA carries no stigma here. Appraisal requirements are nearly identical to conventional for standard single-family homes.
740+ locks top-tier pricing. The jump from 720 to 740 saves about 0.125% in rate, worth $15-20 monthly per $100k borrowed.