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in Glendora, CA
Most Glendora buyers I work with narrow their choice to conventional or FHA financing. Both work well here, but your credit score and down payment determine which one saves you money.
Conventional loans reward strong credit with lower costs. FHA loans open doors for buyers with smaller savings or past credit issues.
Conventional loans require 620+ credit and typically 3-5% down. You avoid upfront mortgage insurance if you put down 20%, and monthly PMI drops off once you hit 78% loan-to-value.
These loans have stricter underwriting but lower ongoing costs for qualified buyers. Your interest rate improves as your credit score and down payment increase.
FHA loans accept 580 credit scores with 3.5% down. You pay 1.75% upfront mortgage insurance plus annual premiums that last the loan's life if you put down less than 10%.
Underwriting forgives past credit events after waiting periods. The trade-off is higher insurance costs that never drop off unless you refinance.
Credit requirements split these loans first. Conventional needs 620 minimum, FHA accepts 580. Down payment minimums look similar at 3-3.5%, but the mortgage insurance rules diverge sharply.
FHA charges 1.75% upfront plus 0.55-0.85% annually for the loan's life. Conventional PMI costs 0.3-1.5% annually but cancels once you reach 78% LTV. On a $600K Glendora purchase, that difference compounds to tens of thousands over time.
Choose FHA if your credit sits between 580-660 or you need the flexible underwriting. Plan to refinance to conventional once your credit improves and you gain equity. Otherwise, the lifetime insurance erodes your savings.
Go conventional if you score 680+ or can put down 10-20%. The lower ongoing costs justify stretching for the higher credit requirement. I see buyers save $200-400 monthly by qualifying for conventional instead of settling for FHA.
Yes, refinancing to conventional drops FHA insurance once you hit 20% equity and improve your credit. Most borrowers I work with refinance within 3-5 years.
Both close in 21-30 days typically. FHA appraisals sometimes flag repair requirements that delay closing, but it's not a consistent pattern.
FHA caps loans at $1,149,825 in LA County for 2024. Conventional goes higher through jumbo programs if needed.
Some do in hot markets due to appraisal repair requirements. Conventional offers have a slight edge in multiple-bid situations.
Yes, FHA doesn't require first-time buyer status. You just need to occupy the property as your primary residence.