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in Huntington Park, CA
Most Huntington Park buyers pick between conventional and FHA loans. Your credit score and down payment amount dictate which one saves you money.
FHA works for lower credit scores and smaller down payments. Conventional loans reward strong credit with lower lifetime costs and no upfront mortgage insurance.
Conventional loans need 620+ credit and at least 3% down. You pay PMI under 20% down, but it drops off when you hit 78% loan-to-value.
Strong credit scores unlock the lowest rates. Borrowers with 740+ scores often beat FHA pricing even with small down payments.
Loan limits go higher than FHA in Los Angeles County. You avoid the upfront insurance premium that FHA charges, which saves thousands at closing.
FHA loans accept 580 credit scores with 3.5% down. You pay 1.75% upfront mortgage insurance plus annual premiums for the loan's life on most loans.
Sellers can contribute up to 6% toward closing costs. Debt-to-income ratios stretch higher than conventional, helping buyers with existing debt qualify.
Gift funds cover the entire down payment without seasoning requirements. Appraisals require stricter property standards than conventional loans demand.
Credit scores create the biggest split. FHA accepts 580 while conventional needs 620 minimum, though most lenders want 640+ for approval.
Mortgage insurance works differently on each loan. Conventional PMI drops off automatically but FHA insurance stays for 11+ years on most loans, sometimes for life.
Down payment minimums look similar but FHA requires 3.5% while conventional accepts 3%. The real cost difference shows up in that 1.75% upfront FHA premium.
Pick FHA if your credit sits between 580-680 or you need flexible debt ratios. The upfront cost stings but approval odds beat conventional for borderline profiles.
Choose conventional with 700+ credit and stable income. You save thousands over the loan term by avoiding permanent mortgage insurance and upfront premiums.
Run the numbers on both options before deciding. A borrower with 680 credit often finds conventional cheaper despite putting down just 3%.
Yes, once you build 20% equity and your credit improves. Most borrowers refinance within 3-5 years to drop FHA insurance.
Both close in 21-30 days typically. FHA appraisals take slightly longer due to stricter property condition requirements.
Conventional approves condos easier with lower HOA requirements. FHA needs full condo certification which eliminates some buildings.
740+ scores unlock the lowest pricing tiers. Every 20-point drop below 740 increases your rate by 0.25-0.50%.
Only if you put down 10%+ and wait 11 years. Most FHA borrowers carry insurance for the loan's entire life.