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in Sanger, CA
Most Sanger buyers choose between conventional and FHA financing. Both work for single-family homes and condos, but they serve different borrower profiles.
FHA loans dominate among first-time buyers in Fresno County. Conventional loans appeal to buyers with strong credit and larger down payments.
Conventional loans require 3-20% down. You avoid monthly mortgage insurance if you put down 20% or more.
Lenders want 620+ credit scores for most programs. Higher scores unlock better rates and lower insurance costs.
These loans cap at $806,500 in Fresno County. They work well for buyers with steady W-2 income and clean credit.
FHA loans require just 3.5% down with 580+ credit. Scores from 500-579 need 10% down instead.
You pay both upfront and monthly mortgage insurance. Monthly MIP stays for the loan's life unless you put down 10% or more.
FHA caps at $644,000 in Fresno County. The program accepts higher debt ratios and gift funds more easily than conventional.
Down payment splits them most. FHA accepts 3.5% with lower credit while conventional demands stronger profiles for 3% programs.
Mortgage insurance costs differ dramatically. FHA charges upfront plus monthly premiums that never drop off. Conventional PMI disappears at 20% equity.
Property standards matter too. FHA inspectors flag cosmetic issues conventional appraisers ignore, sometimes killing deals on fixer-uppers.
Choose FHA if your credit sits between 580-680 or your savings cover 3.5% down but not much more. The upfront insurance gets rolled into your loan amount.
Pick conventional if you have 620+ credit and can manage 5-10% down. You'll pay less over time once PMI drops off.
Buyers planning to stay under five years often prefer FHA despite higher insurance. Those building equity long-term save thousands with conventional.
Yes, through refinancing once you hit 20% equity and 620+ credit. This removes monthly mortgage insurance completely.
Both take 30-45 days typically. FHA appraisals sometimes delay if repairs get flagged on older homes.
Conventional offers look stronger in multiple-bid situations. FHA inspection requirements worry some sellers on aging properties.
740+ unlocks top-tier pricing. Every 20 points below that increases your rate slightly.
Both accept gifts, but FHA allows 100% gifted funds. Conventional requires some borrower contribution on 3% down programs.