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in Reedley, CA
Most Reedley buyers choose between conventional and FHA loans. The right pick depends on your down payment, credit score, and how long you plan to own.
Conventional loans reward strong credit with lower rates and no mortgage insurance after 20% equity. FHA loans get you in with less cash down but carry ongoing insurance costs.
Conventional loans require 3-20% down and credit scores above 620. You avoid government insurance fees, and once you hit 20% equity, your mortgage insurance drops off.
Rates run lower than FHA if your credit is above 700. These loans work best for repeat buyers or anyone with solid credit and savings.
FHA loans accept credit scores as low as 580 with 3.5% down. You pay an upfront insurance premium plus monthly insurance that lasts the loan's life.
These loans help first-time buyers get into Reedley homes faster. The catch is higher total cost over time due to ongoing insurance.
Credit score matters most here. FHA accepts 580, conventional needs 620 minimum. That 40-point gap is the difference between buying now or waiting to rebuild credit.
Down payment feels similar at first—both offer 3-3.5% options. But FHA's lifetime mortgage insurance means you pay an extra $150-300 monthly compared to conventional after you cross 20% equity.
Pick FHA if your credit sits below 640 or you need minimal down payment. The insurance cost hurts long-term, but it gets you approved today.
Choose conventional if you have 640+ credit and plan to stay beyond five years. You'll pay less monthly once you hit 20% equity, and rates start lower from day one.
Yes, through refinancing once you hit 20% equity and 620+ credit. Most borrowers refinance within 3-5 years to drop FHA insurance.
Both take 25-35 days typically. FHA appraisals add 3-5 days since inspectors check more safety items than conventional appraisals.
Conventional looks stronger because it requires better credit and finances. FHA works fine but some sellers worry about appraisal repairs.
740 or higher unlocks top-tier pricing. Every 20 points below that costs about 0.25% in rate.
Yes, but it doesn't lower your insurance cost. The monthly premium stays the same regardless of down payment size.