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in Glendale, CA
Glendale buyers often debate between conventional and FHA financing. Your credit score and down payment determine which path makes sense.
Both loans work for single-family homes and condos across Glendale. The right choice depends on how much cash you have and your credit profile.
Conventional loans require minimum 620 credit and 3% down for first-time buyers. Most Glendale purchases need 5-20% down depending on occupancy and loan amount.
You avoid mortgage insurance once you hit 20% equity. Rates beat FHA pricing when your credit exceeds 680 and you put down at least 10%.
Conventional conforming limits cap at $806,500 in Los Angeles County for 2024. Above that threshold, you need a jumbo loan with stricter requirements.
FHA accepts 580 credit with 3.5% down. You pay 1.75% upfront insurance plus 0.55-0.85% annual premium that stays for the loan life on most purchases.
Sellers can contribute up to 6% toward closing costs with FHA. That flexibility helps Glendale buyers who have limited savings but stable income.
FHA loan limits in Los Angeles County max out at $644,000 for single-family homes. Properties above that price require conventional or jumbo financing.
FHA charges 1.75% upfront insurance that conventional skips entirely. On a $500,000 Glendale purchase, that costs $8,750 at closing or rolled into the loan.
Conventional monthly insurance disappears at 20% equity. FHA keeps charging 0.55-0.85% annually for the full 30 years unless you refinance out.
FHA appraisals flag repairs conventional appraisers ignore. Peeling paint, broken railings, or roof issues can kill FHA deals that conventional loans approve.
Choose FHA if your credit sits below 680 or you have under 10% down. The lower requirements outweigh the lifetime insurance costs for many first-time Glendale buyers.
Go conventional when you have 680+ credit and 10-20% down. You pay less monthly and eliminate insurance faster than FHA borrowers ever will.
Run both scenarios with payment breakdowns. Sometimes FHA wins short-term but conventional saves $50,000+ over the life of a Glendale mortgage.
Yes, refinance once you hit 20% equity and 620+ credit. Most Glendale borrowers save $200-400 monthly by dropping FHA insurance.
Conventional typically closes 2-3 days faster. FHA appraisals take longer and flag more repair requirements that delay closing.
Sellers favor conventional in competitive markets. FHA repair requirements and appraisal issues create more deal-killing complications.
740+ credit unlocks top-tier pricing. Every 20-point drop below 740 costs roughly 0.25-0.50% in rate or upfront fees.
Only if the complex has FHA approval. Many Glendale condos lack certification, forcing you into conventional financing instead.