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in Calabasas, CA
Calabasas home prices demand smart financing choices. Conventional and FHA loans both work here, but they serve different buyer profiles.
Most Calabasas buyers lean conventional due to higher loan limits and lower lifetime costs. FHA makes sense if you're stretching to enter this market with less than 20% down.
Conventional loans require 620+ credit and typically 5-20% down. You avoid mortgage insurance entirely with 20% down, cutting monthly costs significantly.
Loan limits go up to $1,149,825 in Los Angeles County for 2024. This covers most Calabasas inventory without hitting jumbo territory. Rates vary by borrower profile and market conditions.
FHA loans accept 580 credit scores with just 3.5% down. You'll pay upfront mortgage insurance (1.75% of loan amount) plus annual premiums for the loan's life in most cases.
FHA loan limits max at $1,149,825 in LA County, matching conventional limits. Sellers here sometimes hesitate on FHA offers due to stricter property condition requirements.
Mortgage insurance is the biggest split. Conventional PMI costs 0.3-1.5% annually and cancels at 78% LTV. FHA charges 0.55% annually forever on purchases with less than 10% down.
Credit requirements differ sharply. Conventional needs 620 minimum and rewards high scores with better rates. FHA accepts 580 but doesn't adjust rates much based on credit strength.
Property standards matter in Calabasas. FHA appraisers flag peeling paint, cracked driveways, and minor repairs that conventional appraisers ignore. This kills some deals in older neighborhoods.
Choose FHA if you have under 10% down and credit below 680. You'll pay more over time, but you can enter the market now and refinance to conventional later.
Go conventional if you have 10%+ down or credit above 700. Lower rates and removable mortgage insurance offset the higher down payment within a few years. Most Calabasas buyers with steady W-2 income end up here.
Yes, up to $1,149,825 in LA County. Anything above that requires a jumbo loan, which means conventional financing only.
Automatically at 78% loan-to-value based on original amortization schedule. You can request removal at 80% LTV with an appraisal.
Some do, especially in multiple-offer situations. FHA appraisals are stricter and deals fall through more often due to property condition issues.
740 or higher gets you top-tier pricing. Every 20-point drop below that adds roughly 0.25% to your rate.
1.75% upfront (can be financed) plus 0.55% annually. On a $900,000 loan, that's $15,750 upfront and $4,950 per year.