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in Lawndale, CA
Most Lawndale buyers choose between conventional and FHA financing. Both get you into a home, but the costs and approval standards differ sharply.
Your credit score and down payment size determine which loan saves you money. Many borrowers qualify for both but pick the wrong one.
Conventional loans require stronger credit—typically 620 minimum, though 680+ gets better rates. You can put down as little as 3%, but less than 20% means private mortgage insurance.
PMI on conventional loans drops off once you hit 20% equity. No upfront funding fee. Rate pricing favors borrowers with 740+ credit scores.
FHA loans accept 580 credit scores with 3.5% down. You pay 1.75% upfront mortgage insurance plus monthly premiums that never drop off on low-down loans.
Sellers can contribute up to 6% toward closing costs with FHA. The property must meet FHA appraisal standards, which disqualify some fixer-uppers.
Credit score creates the biggest split. Below 620, FHA is your only choice. Between 620-680, FHA often costs less monthly despite permanent mortgage insurance.
Above 700 credit with 10%+ down, conventional wins on total cost. FHA mortgage insurance runs $150-300 monthly on a typical Lawndale purchase and lasts the loan's life unless you put down 10%+.
Pick FHA if your credit sits below 680 or you need the seller to cover closing costs. The upfront fee and permanent insurance matter less than getting approved.
Choose conventional with 700+ credit and 5%+ down payment. You'll pay less over time and drop PMI once you refi or hit 20% equity. Run both scenarios with payment comparisons—the difference compounds over 30 years.
Yes, through a refinance once you hit 20% equity and your credit improves. Most borrowers refi within 3-5 years to drop FHA insurance.
Timeline is similar—both take 25-35 days. FHA appraisals can add time if the property needs repairs to meet standards.
FHA allows gift funds more easily. Conventional requires more documentation if your down payment comes from non-employment sources.
You technically qualify for conventional, but FHA rates may beat conventional pricing at that score. Compare both offers.
Only if the HOA is FHA-approved. Many Lawndale condos aren't on the approved list, forcing you into conventional financing.