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in Rosemead, CA
Rosemead buyers usually narrow their search to conventional and FHA loans. Both work for single-family homes and condos, but they differ sharply on down payment rules and mortgage insurance costs.
Your credit score and savings determine which option saves you money. FHA accepts lower scores but charges lifetime insurance premiums on most loans.
Conventional loans require 620+ credit and work best for borrowers with 5-20% down. You avoid mortgage insurance entirely at 20% down, and PMI drops off automatically at 78% loan-to-value.
These loans cap at $806,500 in Los Angeles County before jumping to jumbo rates. Debt-to-income ratios max out around 50% with strong credit and reserves.
FHA loans accept 580 credit scores with 3.5% down. You pay a 1.75% upfront premium plus annual insurance that runs 0.55-0.85% of the loan amount.
Mortgage insurance stays for the loan's life if you put down less than 10%. Max loan limits hit $644,000 in Los Angeles County for single-family homes.
FHA charges lower rates but adds permanent mortgage insurance on low-down-payment loans. Conventional costs more upfront but lets you drop PMI once you hit 78% LTV through payments or appreciation.
Credit scores drive the biggest spread. A 640 score might add 1.5% to a conventional rate but barely moves FHA pricing. FHA also allows higher debt ratios—up to 56% in some cases versus 50% for conventional.
Choose FHA if your credit sits below 680 or you need maximum debt ratio flexibility. The upfront premium stings, but you'll qualify when conventional lenders decline you.
Go conventional with 700+ credit and at least 5% down. You'll pay less in total interest and mortgage insurance over the loan's life. Refinance out of FHA once your score improves to drop that permanent insurance.
Only if you put down 10% or more at purchase. Otherwise MIP stays for the loan's full term regardless of equity.
740 unlocks top-tier pricing. Scores between 700-739 work fine but cost about 0.25% more in rate.
No. FHA caps at $644,000 in LA County while conventional goes to $806,500 before requiring jumbo programs.
Timeline depends on your broker and documentation, not loan type. Both close in 21-30 days with complete files.
Yes. FHA allows 100% gift funds while conventional requires 5% borrower funds at 5% down, none required at 20% down.