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in Inglewood, CA
Most Inglewood buyers choose between conventional and FHA financing. Both get you into a home, but they cost different amounts upfront and monthly.
FHA loans accept lower credit scores and smaller down payments. Conventional loans reward strong credit with better rates and lower monthly costs over time.
Conventional loans come from private lenders without government backing. You need 620 credit minimum, though 740+ gets the best rates.
Put down 3% as a first-time buyer or 5% otherwise. Anything under 20% down means you pay PMI until you hit 20% equity.
These loans shine for borrowers with good credit buying above FHA limits. PMI drops off automatically at 78% loan-to-value, unlike FHA's lifetime mortgage insurance.
FHA loans are insured by the Federal Housing Administration. Lenders approve 580 credit scores with 3.5% down, or 500 credit with 10% down.
You pay 1.75% upfront mortgage insurance plus 0.55%-0.85% annually. That annual premium stays for the loan's life if you put down under 10%.
Inglewood sellers sometimes resist FHA offers due to stricter property inspections. But these loans work well for buyers rebuilding credit or saving cash for closing.
Credit makes the biggest difference. FHA approves 580 scores while conventional wants 620 minimum. But conventional rewards 740+ credit with rates often 0.25%-0.50% lower than FHA.
Mortgage insurance costs separate these loans long-term. FHA charges 1.75% upfront plus lifelong monthly premiums. Conventional PMI costs less monthly and cancels at 78% LTV.
Down payment flexibility favors FHA slightly. Both accept 3% down for qualified buyers. FHA edges ahead for scores under 620 or recent credit events.
Choose FHA if your credit sits below 640 or you're within two years of bankruptcy or foreclosure. The higher insurance costs beat getting denied entirely.
Go conventional with 680+ credit and stable income. You'll pay less monthly and build equity faster without lifetime mortgage insurance.
Run both scenarios with actual numbers. A $500,000 Inglewood home with 5% down costs $200-300 more monthly on FHA due to insurance, adding $72,000-$108,000 over 30 years.
Yes, refinance to conventional once you hit 20% equity and 620+ credit. This removes FHA's lifetime mortgage insurance and typically lowers your rate.
Conventional loans usually close 3-5 days faster. FHA requires additional property inspections that can delay appraisals and final approval.
Most sellers prefer conventional due to fewer inspection requirements. FHA appraisers flag peeling paint, handrail issues, and roof conditions that delay closing.
740 or higher qualifies for top-tier pricing. Scores between 680-739 work but cost 0.25%-0.50% more in rate or upfront fees.
Yes, FHA approves 2-4 unit properties if you occupy one unit. You need the same 3.5% down with 580 credit score minimum.