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in San Fernando, CA
San Fernando buyers face a real choice between conventional and FHA financing. Your down payment, credit score, and property type decide which path makes sense.
Most first-time buyers lean FHA for the 3.5% down. Repeat buyers with equity often save money going conventional despite the higher down payment.
Conventional loans require 5-20% down and a 620+ credit score. You avoid upfront mortgage insurance and can cancel PMI at 20% equity.
Sellers prefer conventional offers in competitive San Fernando neighborhoods. You also face fewer property restrictions and faster appraisals.
FHA loans accept 580 credit scores with just 3.5% down. You pay a 1.75% upfront premium plus monthly insurance for the loan's life.
The low down payment opens homeownership earlier. But you'll need a property that meets stricter safety and condition standards.
Credit score creates the biggest gap. Conventional needs 620 minimum while FHA approves at 580.
Mortgage insurance works differently. FHA charges upfront and monthly premiums for life. Conventional charges only monthly PMI that cancels at 20% equity.
Down payment flexibility favors FHA at 3.5% versus 5% conventional minimum. Property standards matter more with FHA inspections.
Choose FHA if your credit sits between 580-680 or you need the 3.5% down option. Just budget for higher monthly costs from lifetime mortgage insurance.
Go conventional with 620+ credit and 5% down saved. You'll pay less monthly and drop insurance at 20% equity. Older San Fernando homes often fit conventional better too.
Conventional requires 620 minimum credit. FHA approves at 580, making it easier for buyers rebuilding credit.
Conventional PMI cancels at 20% equity. FHA mortgage insurance stays for the loan's entire life.
FHA requires just 3.5% down with 580+ credit. Conventional needs 5% minimum, though 20% down avoids PMI entirely.
Sellers favor conventional offers in competitive markets. FHA inspections add time and potential repair requirements.
Conventional works better for properties needing repairs. FHA requires homes to meet strict safety standards before closing.