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in La Habra Heights, CA
La Habra Heights sits on hillside terrain with larger lot sizes and horse properties. These homes typically command higher prices than surrounding areas, which affects how FHA loan limits play out.
Choosing between conventional and FHA financing changes what you pay upfront and monthly. Most buyers here lean conventional, but FHA works for specific situations.
Conventional loans require 3-5% down for primary homes and 620+ credit scores. No upfront mortgage insurance if you put down 20% or more.
PMI drops off automatically at 78% loan-to-value or by request at 80%. These loans handle higher price points without hitting government limits.
You get better rates with strong credit and larger down payments. Lenders price these loans based on your risk profile.
FHA loans accept 3.5% down with 580 credit scores. You pay 1.75% upfront mortgage insurance plus annual premiums that last the loan's life.
These loans cap at $1,149,825 in Los Angeles County. Sellers can contribute up to 6% toward closing costs, which helps preserve your cash.
Credit standards stay flexible even after bankruptcy or foreclosure. Gift funds and grants cover your entire down payment.
Mortgage insurance works differently. FHA charges 1.75% upfront plus 0.55-0.85% annually for the loan's life. Conventional PMI costs 0.3-1.5% annually and cancels at 78% LTV.
Credit pricing hits harder with conventional loans. A 640 score might cost you 2% more in rate compared to 740. FHA rates stay more consistent across credit tiers.
Down payment rules diverge at higher loan amounts. Conventional requires 15-20% down above conforming limits. FHA maxes out at its county limit regardless of down payment size.
Choose conventional with 10%+ down payment and 700+ credit. You avoid lifetime mortgage insurance and access better rates. This matters in La Habra Heights where most homes exceed median county prices.
FHA works if you're putting down under 10% with credit below 680. The seller concession allowance helps offset your upfront costs. Just confirm the home price falls within the $1,149,825 limit.
Run the numbers on mortgage insurance costs over five years. FHA looks cheaper monthly at first, but conventional saves money long-term once PMI drops. Your equity timeline determines which wins.
Yes, if the home stays under $1,149,825 and meets FHA property standards. The appraiser evaluates the property as residential, not agricultural.
Refinance once you hit 20% equity and 680+ credit. You eliminate mortgage insurance and typically lower your rate.
Conventional rates beat FHA with 740+ credit and 15%+ down. Below that threshold, FHA rates often compete or win.
620 is the floor, but you need 680+ to get competitive pricing. Below 680, FHA typically costs less overall.
Sellers can reject any offer. FHA appraisals require repairs that conventional appraisals don't, which some sellers avoid.