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in San Marino, CA
San Marino buyers typically choose between conventional and FHA financing based on down payment capacity and credit profile. Each loan type handles million-dollar properties differently, which matters in this high-value market.
Conventional loans dominate San Marino because they allow higher loan amounts without FHA's strict property limits. FHA can still work for certain properties, but the differences in insurance costs and qualification requirements shift the math considerably.
Conventional loans require 620+ credit for most lenders, with best rates starting around 740. You can put down as little as 3%, though 20% eliminates mortgage insurance entirely.
These loans have no upper limit on property value, making them the default choice for San Marino's price range. PMI drops off automatically at 78% loan-to-value, unlike FHA's lifetime insurance requirement.
Debt-to-income ratios cap around 50% for most conventional approvals. Lenders price these loans based on credit score, down payment, and property type with transparent adjustment factors.
FHA accepts credit scores as low as 580 for 3.5% down, or 500-579 with 10% down. These government-backed loans charge upfront mortgage insurance of 1.75% plus annual premiums that last the loan's life.
The 2025 FHA loan limit for Los Angeles County high-cost areas is $1,149,825. Most San Marino properties exceed this threshold, immediately disqualifying FHA as an option for typical buyers here.
FHA allows higher debt ratios than conventional, sometimes approving buyers at 56% DTI with compensating factors. The tradeoff is permanent mortgage insurance that adds roughly $400-$600 monthly on a $900,000 loan.
Credit requirements separate these loans first. Conventional needs 620 minimum while FHA goes to 580, but that flexibility costs you through higher insurance premiums that never disappear.
Property price limits matter critically in San Marino. FHA caps at $1,149,825 while conventional has no ceiling, which rules out FHA for the majority of listings in this city.
Mortgage insurance structures differ completely. Conventional PMI cancels at 78% LTV automatically, but FHA's insurance remains for 30 years unless you refinance out. On a $900,000 loan, that's $180,000+ in unnecessary insurance over the life of the loan.
FHA makes sense only if you're buying one of the rare San Marino properties under $1.15M and have credit below 640. Even then, run the numbers on that permanent mortgage insurance before committing.
Conventional is the practical choice for 95% of San Marino buyers given property values here. If you're stretching to buy in this city, 5% down conventional beats FHA on total cost even with PMI.
Most San Marino buyers put 20%+ down to avoid insurance entirely. If that's not feasible, 5-10% down conventional still costs less monthly than FHA once you factor in both insurance premiums.
FHA caps at $1,149,825 in Los Angeles County. Most San Marino properties sell above this limit, requiring conventional or jumbo financing instead.
Not with 3.5% down. FHA insurance stays for the loan's entire 30-year term unless you refinance to conventional once you have 20% equity.
Minimum is 620, but you'll pay significantly higher rates below 700. Best pricing starts at 740+ credit with the lowest rates reserved for 780+ borrowers.
Yes if you have 620+ credit. Conventional PMI costs less monthly and cancels automatically, while FHA insurance is permanent and more expensive.
FHA allows up to 56% debt-to-income with strong compensating factors. Conventional typically caps around 50%, though some lenders approve higher with excellent credit.