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in Bradbury, CA
Bradbury's luxury estates and equestrian properties typically run well above LA County averages. Most buyers here face a straightforward choice: conventional financing or FHA loans.
Conventional loans dominate this market because high property values often exceed FHA limits. But FHA can work for certain Bradbury properties, especially if you're rebuilding credit or making a smaller down payment.
Conventional loans have no government-imposed price ceiling. In Bradbury, where estates routinely exceed $2 million, that matters. You can put down 5% to 20% depending on your credit and cash reserves.
These loans reward strong credit. At 740+ FICO, you get the best rates and can avoid PMI faster. Lenders look at debt-to-income ratios around 43% to 50%, sometimes higher with compensating factors.
FHA loans require just 3.5% down with credit scores as low as 580. You pay an upfront mortgage insurance premium plus annual premiums that stick around for the loan's life in most cases. The trade-off: easier approval with less cash.
FHA loan limits in LA County sit at $1,149,825 for single-family homes in 2024. That rules out most Bradbury estates but covers smaller properties and condos. Sellers sometimes resist FHA offers because appraisals are stricter.
The biggest split is loan limits. Conventional has none. FHA caps at $1.1 million in LA County, which excludes most Bradbury inventory. Conventional requires higher credit scores for the best pricing, while FHA accepts 580 FICO with compensating factors.
Mortgage insurance works differently. Conventional PMI drops at 20% equity. FHA's annual premium stays put unless you refinance. Down payment minimums favor FHA at 3.5%, but conventional matches that at 5% for buyers with solid credit and reserves.
Use conventional for Bradbury's typical luxury market. If your purchase price exceeds $1.1 million, FHA isn't an option anyway. Even below that threshold, conventional usually costs less long-term because mortgage insurance eventually disappears.
FHA makes sense if you're buying one of Bradbury's rare properties under the loan limit and your credit sits below 680. The lower down payment preserves cash for repairs or reserves. Just know that sellers in this market often prefer conventional offers because appraisals are less restrictive.
No. FHA caps at $1,149,825 in LA County. You need conventional, jumbo, or portfolio financing for properties above that limit.
Conventional typically costs less monthly once you factor in mortgage insurance differences. FHA's lifetime insurance premium adds significant cost over 30 years.
Sometimes. FHA allows horse properties if they meet condition standards and stay under the loan limit. Most Bradbury equestrian estates exceed that cap.
Minimum 620, but you want 740+ for best pricing. Between 620 and 739, rates increase and PMI costs more.
Yes. Sellers can reject any offer. FHA appraisals require stricter property conditions, which makes some sellers prefer conventional financing.