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in Kingsburg, CA
Most Kingsburg buyers qualify for either conventional or FHA financing. The right choice depends on your down payment, credit score, and how long you plan to own the home.
FHA makes sense when you're stretching to buy. Conventional wins when you have 10-20% down and decent credit. The gap between them narrows fast as your down payment grows.
Conventional loans offer the cleanest exit from mortgage insurance. Put 20% down and you skip PMI entirely. Even at 10% down, PMI drops off once you hit 20% equity.
You need 620 minimum credit, but rates improve significantly at 700+. Debt-to-income caps at 50% for most borrowers. Loan limits go up to $1,149,825 in Fresno County for 2024.
FHA loans accept 580 credit scores with 3.5% down. You pay an upfront insurance premium of 1.75% plus annual premiums that never drop off. This makes FHA expensive long-term.
The program works best for first-time buyers who can't hit 10% down. You get flexible underwriting and can include gift funds for your entire down payment. Sellers can cover up to 6% of closing costs.
The credit score gap matters most. FHA beats conventional by 1-2% in rate when your score sits between 580-680. Above 720, conventional almost always costs less monthly.
Mortgage insurance kills FHA over time. Annual premiums run 0.55-0.85% of your loan balance every year. Conventional PMI drops to zero once you reach 20% equity. On a 30-year loan, that difference adds up to $40,000+.
Choose FHA if you're under 5% down or your credit sits below 680. Plan to refinance to conventional within 2-3 years once you build equity. The upfront cost hurts but approval odds double.
Go conventional with 10%+ down and 700+ credit. You'll save money every month and own the home free of insurance sooner. Kingsburg's prices make the 20% threshold reachable for many buyers.
No. FHA requires insurance for the loan's life. You must refinance to conventional to eliminate it.
Both close in 21-30 days typically. FHA adds appraisal requirements that can extend timelines 5-7 days.
No. You can go as low as 3% down. You'll pay PMI until reaching 20% equity.
Yes. Some Kingsburg sellers prefer conventional because FHA appraisals flag repair items that delay closing.
Compare both. FHA may offer better rates at that score despite permanent insurance costs.