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in La Verne, CA
La Verne buyers usually face this choice: go conventional with a bigger down payment or use FHA to get in with 3.5% down. Both loans work here, but your credit score and cash reserves determine which one actually saves you money.
Most La Verne properties qualify for either program. The real question is whether you want lower upfront costs or cheaper monthly payments long-term.
Conventional loans skip government insurance, which means lower monthly costs if you put down 20% or more. Below that, you'll pay PMI until you hit 20% equity—but you can cancel it once you're there.
Credit matters more here. You need 620 minimum, but rates improve significantly at 680 and again at 740. Stronger credit can save you thousands over the loan term compared to FHA.
FHA loans let you buy with just 3.5% down if your credit is 580 or above. You'll pay both an upfront insurance fee and monthly premiums, but the lower credit requirements get people approved who can't qualify conventionally.
The catch: FHA mortgage insurance never drops off unless you refinance. That monthly premium stays for the life of your 30-year loan, which adds up to real money over time.
Credit drives this decision. Below 680, FHA often costs less monthly despite permanent mortgage insurance. Above 720 with 10% down, conventional usually wins because you'll cancel PMI in a few years.
Down payment matters too. FHA's 3.5% floor beats conventional's typical 5% for first-timers. But if you can swing 15-20% down, conventional always costs less monthly because PMI drops faster or never applies.
Choose FHA if your credit sits between 580-680 or you have minimal savings for down payment. You'll get approved easier and start building equity now rather than waiting years to improve credit.
Go conventional if your credit exceeds 700 and you have 10% or more saved. You'll pay less over time and drop mortgage insurance once you build equity. Also your only option for La Verne homes priced above FHA loan limits.
Yes, refinancing to conventional once you hit 20% equity eliminates FHA mortgage insurance. Most borrowers do this after 5-7 years to cut monthly costs.
Both take 30-45 days typically. FHA appraisals sometimes add a few days because inspectors check more property details than conventional appraisals require.
Many do, since conventional appraisals are less strict. FHA requires certain repairs before closing, which can delay or kill deals on older homes.
620 gets you approved, but you'll pay high rates. Hit 740+ to access the best pricing and save substantially on interest.
It adds $150-250 monthly on a $500k loan. Over 30 years, that's $54k-90k you never recover unless you refinance out.