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in San Joaquin, CA
Most San Joaquin buyers choose between conventional and FHA financing. Your credit score and down payment size determine which path makes sense.
Conventional loans reward strong credit with lower costs long-term. FHA loans open doors for buyers with smaller down payments or credit challenges.
Conventional loans require 620+ credit and typically 5-20% down. No mortgage insurance with 20% down saves hundreds monthly.
Rates vary by borrower profile and market conditions. Stronger credit scores below 740 unlock better pricing than government loans offer.
FHA loans accept 580 credit scores with 3.5% down. You pay upfront and monthly mortgage insurance regardless of down payment size.
Debt-to-income ratios stretch higher than conventional—up to 50% in some cases. This helps buyers with existing car payments or student loans qualify.
Mortgage insurance is the big split. Conventional PMI drops off at 78% loan-to-value. FHA's MIP stays for the loan's life with under 10% down.
FHA charges 1.75% upfront insurance plus 0.55-0.85% annually. Conventional PMI costs 0.3-1.5% yearly based on credit and down payment. Do the math over 5-7 years—the difference adds up.
Choose FHA if your credit sits between 580-680 or you're putting down less than 5%. The lenient underwriting outweighs higher insurance costs short-term.
Choose conventional with 700+ credit and 10%+ down. You'll pay less monthly and eliminate insurance faster. First-time buyers with strong credit should run both scenarios—conventional often wins even at 3% down.
Yes, refinance once you hit 20% equity and 620+ credit. This removes FHA's permanent mortgage insurance and typically lowers your rate.
Both take 25-35 days typically. FHA appraisals require property condition standards that occasionally delay closing if repairs are needed.
Rates vary by borrower profile and market conditions. Conventional beats FHA pricing above 720 credit, but FHA wins with lower scores.
No, FHA requires owner occupancy. Conventional allows 15% down for investment properties in San Joaquin and throughout Fresno County.
FHA approves up to 50% debt-to-income in most cases. Conventional typically caps at 45% unless you have compensating factors like reserves.