Question 1

What credit score do I need for conventional versus FHA in San Fernando?

Accepted Answer

Conventional requires 620 minimum credit. FHA approves at 580, making it easier for buyers rebuilding credit.

Question 2

Can I cancel mortgage insurance with either loan type?

Accepted Answer

Conventional PMI cancels at 20% equity. FHA mortgage insurance stays for the loan's entire life.

Question 3

Which loan needs a smaller down payment?

Accepted Answer

FHA requires just 3.5% down with 580+ credit. Conventional needs 5% minimum, though 20% down avoids PMI entirely.

Question 4

Do San Fernando sellers prefer one loan over the other?

Accepted Answer

Sellers favor conventional offers in competitive markets. FHA inspections add time and potential repair requirements.

Question 5

What if I'm buying a fixer-upper in San Fernando?

Accepted Answer

Conventional works better for properties needing repairs. FHA requires homes to meet strict safety standards before closing.

Conventional vs FHA Loans in San Fernando: Which Loan Wins for LA County Buyers?