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in Artesia, CA
Most Artesia buyers choose between conventional and FHA loans. Both get you into a home, but the costs and requirements differ significantly.
Your credit score and down payment determine which one saves you money. FHA accepts lower scores but charges mortgage insurance for life on most loans.
Conventional loans demand stronger credit but offer better long-term value. You need at least 620 credit and typically 5% down, though 3% programs exist for first-time buyers.
The big advantage: put down 20% and avoid mortgage insurance entirely. With less than 20% down, you pay PMI until you hit 20% equity—then it drops off automatically.
FHA loans accept 580 credit scores with just 3.5% down. That lower bar makes homeownership accessible to more Artesia buyers, especially first-timers building credit.
You pay two types of insurance: 1.75% upfront (rolled into the loan) plus annual premiums. On loans over 90% LTV, that annual insurance stays for the loan's life unless you refinance out.
Credit requirements create the sharpest divide. FHA approves 580 scores; conventional starts around 620 and gives better rates above 740.
Mortgage insurance rules matter more than most buyers realize. FHA charges insurance for life on 96.5% LTV loans. Conventional drops PMI at 20% equity with no refinance needed.
Down payment flexibility favors FHA for minimal cash buyers. But conventional's 3% down option for first-timers closes that gap if your credit qualifies.
Choose FHA if your credit sits between 580-680 or you need maximum debt ratio flexibility. The insurance costs sting, but you get approved when conventional lenders pass.
Go conventional with 680+ credit and 5% down minimum. You save thousands on insurance over time, especially if you can hit 20% down upfront.
Plan to refinance FHA to conventional once your credit improves and equity builds. That move eliminates lifetime mortgage insurance and cuts your monthly payment significantly.
Yes, refinance once you hit 20% equity and 620+ credit. This move eliminates FHA's lifetime mortgage insurance and typically lowers your rate.
Both take 30-45 days typically. FHA requires appraisers to flag repair items, which can delay closing if the home needs work.
Yes, FHA approves up to 56% DTI with compensating factors. Conventional typically caps at 50%, though some lenders go higher.
740+ unlocks top-tier pricing. Every 20-point drop below that costs you in rate or fees.
Yes, both allow gifted down payments from family. FHA accepts gifts for the entire 3.5%, while conventional requirements vary by program.