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in Parlier, CA
Parlier buyers usually face one big choice: conventional or FHA financing. Both work well in Fresno County, but your credit score and cash reserves determine which saves you money.
Conventional loans reward strong borrowers with lower costs long-term. FHA loans get you in the door with less cash and looser credit standards.
Conventional loans require 620+ credit and typically 3-20% down. Lenders price these based on your full financial profile, so stronger borrowers get better terms.
Put down 20% and you skip mortgage insurance completely. Drop below that threshold and you pay PMI until you hit 20% equity—but it cancels automatically.
These loans cap at $766,550 in Fresno County for 2024. Most Parlier properties fall well under that limit, making conventional accessible for most local buyers.
FHA loans accept 580 credit scores with 3.5% down. Drop to 500 credit and you can still qualify with 10% down—something conventional lenders won't touch.
You pay two types of mortgage insurance here. Upfront MIP costs 1.75% of the loan amount at closing. Annual MIP runs 0.55-0.85% yearly and never cancels on most loans.
FHA caps at $498,257 in Fresno County. That covers nearly every property in Parlier, where home prices run affordable compared to coastal California markets.
Credit score creates the biggest split. FHA accepts 580 while conventional needs 620 minimum. That 40-point gap makes FHA the only option for many first-time Parlier buyers.
Mortgage insurance costs differ dramatically. Conventional PMI cancels at 20% equity—usually within 5-7 years. FHA insurance never drops off unless you put down 10%+ and wait 11 years.
Down payment minimums look similar at 3-3.5%, but cash needs diverge at closing. FHA's upfront insurance premium adds roughly $7,000 on a $400,000 loan—money conventional buyers keep.
Choose FHA if your credit sits below 640 or you carry minimal savings. The upfront costs sting, but getting approved matters more than optimizing rates when you're building credit.
Pick conventional with 680+ credit and 5%+ down payment. You'll pay less over time and drop insurance faster. Refinance from FHA to conventional once you hit 20% equity to cut that permanent insurance.
Parlier's affordable prices make the FHA loan limit a non-issue for most buyers. Your credit profile drives this decision more than property values in this market.
Yes, refinance once you hit 20% equity and 620+ credit. This move eliminates permanent mortgage insurance and often lowers your rate.
Conventional typically closes 3-5 days quicker. FHA requires additional property inspections that extend timelines slightly.
Both use the same 43-50% debt-to-income limits. FHA just accepts weaker credit and smaller down payments for that income.
Some prefer conventional due to stricter FHA appraisals. Strong pre-approval and quick close timeline matter more than loan type in most cases.
Yes, both programs accept gifted down payments from family. FHA allows 100% gifted funds while conventional varies by down payment size.