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in Beverly Hills, CA
Beverly Hills buyers face a choice most lenders won't tell you upfront: FHA loans cap at $1,149,825 in LA County. That eliminates FHA for most properties here, where typical homes run well into the millions.
If you're looking at condos or rare entry-level properties under the limit, FHA's 3.5% down payment becomes an option. But conventional loans dominate this market for good reason—no mortgage insurance after 20% equity and no upfront funding fees.
Conventional loans in Beverly Hills typically start at $1M and climb from there. You need 620+ credit for standard approval, though many borrowers here bring 700+ scores and 20% down to avoid PMI entirely.
These loans transition smoothly into jumbo territory above $1,149,825. Rate pricing improves as your down payment increases—put down 25% and you'll see measurably better terms than someone financing 95%.
FHA allows 3.5% down with 580 credit, which sounds attractive until you hit the $1,149,825 ceiling. That 1.75% upfront mortgage insurance premium gets rolled into your loan—on a $1M property, that's $17,500 added to your balance.
Monthly mortgage insurance runs 0.55-0.85% annually and never drops off unless you refinance. For Beverly Hills condos under the limit, FHA works if your credit sits below 680 or you need minimal down payment.
The split comes down to property price and down payment. Conventional loans have no upper limit and let you drop PMI at 20% equity. FHA caps below most Beverly Hills inventory and charges lifetime mortgage insurance.
Credit flexibility favors FHA—580 scores qualify versus 620 for conventional. But conventional loans reward strong profiles with better rates and lower costs. On a $900K condo, FHA's lifetime MI costs $40K+ over ten years compared to conventional PMI that drops off.
Choose FHA if you're buying under $1.15M with limited down payment funds and credit below 680. The upfront and monthly insurance costs become worth it when you can't otherwise qualify conventional. Most Beverly Hills buyers don't fit this profile.
Go conventional for any property above the FHA limit or when you have 10%+ down payment and 680+ credit. You'll pay less over time and avoid insurance once you hit 20% equity. For this market's typical $2M-5M range, conventional is your only option anyway.
No. FHA loans cap at $1,149,825 in Los Angeles County. You need conventional or jumbo financing above that limit.
Not unless you refinance to conventional. FHA charges monthly MI for the life of the loan regardless of equity.
Minimum 620, but 700+ gets you the best rates. Most competitive offers require 720+ for jumbo amounts.
FHA requires just 3.5% down. Conventional starts at 3% but most Beverly Hills deals use 10-25% down.
1.75% of the loan amount, added to your balance. On $1M borrowed, that's $17,500 rolled into the loan.