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in Temple City, CA
Temple City buyers choosing between conventional and FHA loans face a real tradeoff. Conventional requires more cash down but avoids lifetime mortgage insurance.
FHA opens the door with as little as 3.5% down. It carries insurance costs for the life of the loan if you put down less than 10%. The 2026 conforming limit for Temple City is $1,249,125, so both programs work here.
Conventional at 6.25% works best when you have real savings. At 80% LTV, the monthly P&I payment is $4,618 with zero PMI.
Conventional underwriting wants documented income and two years of work history. Plan on reserves beyond your down payment.
FHA at 5.875% opens the door with minimal down payment. The monthly P&I is $4,437 on a $750,000 loan at 96.5% LTV.
FHA mortgage insurance (MIP) runs for the life of the loan when you put down less than 10%. Your actual monthly payment includes that insurance on top of the P&I figure.
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 Temple City.
Temple City buyers choosing between conventional and FHA loans face a real tradeoff. Conventional requires more cash down but avoids lifetime mortgage insurance.
FHA opens the door with as little as 3.5% down. It carries insurance costs for the life of the loan if you put down less than 10%. The 2026 conforming limit for Temple City is $1,249,125, so both programs work here.
Conventional at 6.25% works best when you have real savings. At 80% LTV, the monthly P&I payment is $4,618 with zero PMI.
The payment gap is real but the down-payment gap is bigger. Conventional at 80% LTV has zero mortgage insurance.
FHA's lower rate doesn't fully offset lifetime MIP when you're under 10% down. If you have time to save, conventional eliminates the insurance cost entirely.
Pick conventional if you earn above Los Angeles County's median household income of $87,760 and have saved 20% down. Your payment stays clean, no insurance ever touches it.
Pick FHA if you're early in your career or have limited liquid savings but solid income. The lower down payment gets you into the market now.
Conventional at 6.25% runs $4,618 P&I on a $750,000 loan at 80% LTV. FHA at 5.875% runs $4,437 P&I on a $750,000 loan at 96.5% LTV. FHA's lower rate saves about $180 monthly, but add FHA's mortgage insurance on top.
Yes. Conventional at 80% LTV carries zero PMI. Below 80% LTV, PMI applies. At 20% down, you hit 80% LTV exactly and skip insurance entirely.
FHA requires a minimum FICO of 580 to qualify. Some lenders set their floor higher, but 580 is the FHA baseline. Conventional typically wants 620 or better.
Yes, but only if you put down 10% or more. Then MIP cancels after 11 years. Below 10% down, MIP stays for the life of the loan.
FHA. The lower down payment means you close sooner. Underwriting is also typically faster. Conventional requires more savings time upfront.