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in Santa Fe Springs, CA
Santa Fe Springs buyers face a real choice between conventional and FHA financing. Most borrowers qualify for both, but one will cost you less over the loan term.
The difference comes down to your down payment size and credit profile. FHA opens doors with 3.5% down, while conventional rewards stronger finances with better rates and no upfront mortgage insurance.
Conventional loans give you the cleanest path to homeownership if you have decent credit and some cash saved. You need 620 minimum credit, though 740+ gets you the best pricing.
Put down 20% and you skip mortgage insurance entirely. Below that threshold, you'll pay PMI until you hit 20% equity, but you can cancel it once you get there—unlike FHA.
FHA loans let you buy with just 3.5% down if your credit is 580 or higher. Between 500-579 credit, you need 10% down but can still get approved.
You'll pay 1.75% upfront mortgage insurance at closing, plus monthly premiums for the life of the loan. That permanent monthly cost is the tradeoff for the lower barrier to entry.
Mortgage insurance is where these loans split hardest. FHA charges 1.75% upfront plus monthly premiums that stick around forever on minimum down payment loans. Conventional PMI costs more monthly but disappears at 20% equity.
Credit scoring also works differently. FHA uses the same rate for anyone 580-850, while conventional pricing improves dramatically as your score climbs. A 780 score might save you 0.75% in rate on conventional versus FHA.
Choose FHA if your credit is below 680 or you're scraping together the minimum down payment. The upfront fee stings, but the approval odds and low entry point outweigh the long-term insurance cost when you need to get in now.
Go conventional if you have 740+ credit and at least 5% down. You'll pay less upfront, get a better rate, and escape mortgage insurance faster. Run the numbers on both—the monthly payment difference adds up over 30 years.
Yes, through a conventional refinance once you hit 20% equity. You'll need qualifying credit and income at that time, plus closing costs for the new loan.
Timeline is identical—both take 21-30 days typically. FHA requires an FHA appraisal which can add 2-3 days in busy periods.
Yes, but the condo complex must be approved by Fannie/Freddie for conventional or HUD for FHA. Not all complexes qualify for both.
Around 680-700 is the break-even point. Above that, conventional pricing improves while FHA stays flat.
Yes, both allow 100% gift funds from family. FHA is slightly more flexible about non-family gifts from approved sources.