Loading
in Bellflower, CA
Bellflower buyers face a choice most first-timers wrestle with: go conventional or FHA. The right answer depends on your down payment, credit score, and how long you plan to stay.
FHA loans get you in with less cash down but cost more monthly. Conventional loans reward strong credit with lower overall costs. Let's break down what actually matters for your approval.
Conventional loans aren't backed by the government. You deal directly with the lender's guidelines, which means stricter credit and income checks but better pricing if you qualify.
Put down 20% and you skip mortgage insurance entirely. Go below 20% and you pay PMI until you hit that equity threshold. Rates vary by borrower profile and market conditions, but strong credit gets rewarded here.
FHA loans are insured by the Federal Housing Administration. That backing lets lenders approve borrowers with lower credit scores and smaller down payments than conventional programs allow.
You'll pay two types of mortgage insurance: an upfront premium rolled into your loan and monthly premiums for the life of the loan in most cases. This makes FHA accessible upfront but more expensive long-term.
Credit score creates the biggest fork in the road. Conventional needs 620 minimum, FHA goes to 580. That 40-point gap opens doors for buyers rebuilding credit or new to borrowing.
Down payment looks similar on paper but FHA's insurance structure changes everything. Conventional PMI cancels at 20% equity. FHA insurance sticks around unless you refinance out later.
Los Angeles County prices mean your loan amount matters. FHA caps at $1,149,825 for single-family homes here. Conventional conforming goes to the same limit, but jumbo conventional options exist above that.
Choose FHA if your credit sits between 580-660 or you need the lower down payment for cash flow. Just know you're paying for that flexibility every month through mortgage insurance premiums.
Go conventional if you're at 680+ credit and can manage 5-10% down. You'll pay less monthly and build equity faster. If you hit 20% down, you'll save thousands over the loan term.
Planning to move in under seven years? FHA's lower upfront costs might win. Staying longer? Conventional's lower monthly expense pays off. Run the numbers both ways before deciding.
Yes, once you hit 20% equity and your credit improves. Most borrowers do this to drop mortgage insurance and lower their rate.
Conventional typically closes quicker since FHA requires appraisers to flag property repairs. Both take 30-45 days on average.
Many prefer conventional offers because FHA appraisals can kill deals over minor property issues. Conventional feels safer to sellers.
740+ unlocks top-tier pricing. You'll qualify at 620 but pay more in rate and PMI costs below 740.
Only if the complex is FHA-approved. Many smaller Bellflower condo buildings aren't, limiting your options to conventional.