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in Hanford, CA
Two loan types dominate Hanford home purchases: conventional and FHA. Choosing wrong costs you money every month.
Your credit score, down payment, and income type usually decide which one wins. We'll break down exactly where each loan fits.
Conventional loans aren't government-backed. That means stricter requirements — but better terms if you qualify.
Hit 20% down and you skip mortgage insurance entirely. That's a real monthly savings most FHA borrowers never get.
FHA loans are backed by the federal government. Lenders take less risk, so they approve borrowers conventional won't touch.
You can qualify with a 580 credit score and just 3.5% down. Scores between 500-579 require 10% down.
The biggest difference is mortgage insurance. FHA charges it forever unless you refinance out. Conventional drops it once you hit 20% equity.
HousingWire flagged the 30-year fixed hitting 6.57% recently — at that rate level, FHA's mortgage insurance premium adds real cost over time. Rates vary by borrower profile and market conditions.
Score above 700 with 10%+ down? Conventional almost always makes more sense in Hanford. You'll pay less over the life of the loan.
Score under 640 or limited savings? FHA gets you in the door. Don't let perfect be the enemy of closing.
Yes — once you build enough equity, you can refinance into conventional and drop the mortgage insurance. Many Hanford borrowers do exactly that.
Conventional loans typically move faster. FHA requires an appraisal that meets HUD property standards, which can slow things down.
Standard FHA requires the home to be move-in ready. The FHA 203k rehab loan is the exception if you need to finance repairs.
Lenders tier rates by score. A 740+ score typically puts you in the top pricing tier. Rates vary by borrower profile and market conditions.
Yes, with a 580+ credit score. Drop below 580 and lenders require 10% down. Scores below 500 don't qualify for FHA at all.
FHA is stricter. The property must meet HUD's minimum standards. Conventional appraisals focus on value, not condition requirements.