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in San Marino, CA
San Marino buyers choosing between conventional and FHA loans face a real tradeoff. Conventional at 6.25% requires 20% down and no mortgage insurance. FHA at 5.875% lets you put down just 3.5% but carries lifetime mortgage insurance above 90% LTV.
Both programs work for primary residences up to the 2026 conforming limit of $1,249,125. The choice hinges on your down payment savings and how long you plan to stay.
Conventional at 6.25% works when you have solid savings for a down payment. At 80% LTV, there's no PMI and the monthly P&I runs $4,618. You'll need 740+ FICO and clean income documentation.
Conventional underwriting is straightforward for salaried buyers. Two years of work history and reserves beyond your down payment strengthen your application. The rate locks for 30 days.
FHA at 5.875% opens the door with just 3.5% down and a 580+ FICO floor. The monthly P&I is $4,437 on a $750,000 loan at 96.5% LTV. Upfront mortgage insurance is 1.75% of the loan amount.
FHA MIP runs for the life of the loan when down payment is under 10%. Your monthly payment includes this insurance cost. The tradeoff is lower down payment and a slightly lower rate.
Local decision guide
Use this comparison to weigh Conventional Loans and FHA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in San Marino.
San Marino buyers choosing between conventional and FHA loans face a real tradeoff. Conventional at 6.25% requires 20% down and no mortgage insurance. FHA at 5.875% lets you put down just 3.5% but carries lifetime mortgage insurance above 90% LTV.
Both programs work for primary residences up to the 2026 conforming limit of $1,249,125. The choice hinges on your down payment savings and how long you plan to stay.
Conventional at 6.25% works when you have solid savings for a down payment. At 80% LTV, there's no PMI and the monthly P&I runs $4,618. You'll need 740+ FICO and clean income documentation.
The down payment gap is the biggest difference. Conventional demands 20% down to skip PMI entirely. FHA lets you start with 3.5%, which means keeping more cash in the bank at closing.
Mortgage insurance works differently. Conventional PMI cancels at 78% LTV automatically. FHA MIP stays for the life of the loan if you put down less than 10%. Over 30 years, that adds up.
The rate favors FHA by 37.5 basis points. At 5.875% versus 6.25%, FHA's lower rate cuts the monthly payment by $181. But FHA's lifetime MIP offsets some of that savings.
Choose conventional if you have $187,500 saved for a $937,500 purchase. You'll skip PMI entirely and own equity faster. This path works for buyers with steady W-2 income and a clean credit history.
Choose FHA if your down payment is under 10% but your credit is solid. The lower rate and minimal down payment keep your monthly cost reasonable. FHA makes sense when you'd rather invest savings elsewhere than tie them up in a down payment.
Conventional at 6.25% costs $4,618 monthly P&I. FHA at 5.875% costs $4,437 monthly P&I. FHA saves $181 per month, but add FHA's mortgage insurance to the total payment.
Yes. At exactly 80% LTV, conventional has zero PMI. Below 80% LTV, no PMI applies. Above 80%, PMI is required until you hit 78% LTV through paydown.
No, not if you put down less than 10%. With 10% or more down, MIP cancels after 11 years. Under 10% down, MIP stays for the full 30-year loan term.
Both typically close in 30 to 45 days. FHA appraisals can take slightly longer. Conventional underwriting is often faster for borrowers with straightforward income.
Yes. FHA's floor is 580 FICO with 3.5% down. Most lenders add overlays and require 620+. Ask your broker about their specific credit policy.