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in West Hollywood, CA
West Hollywood buyers choosing between conventional and FHA loans face a real trade-off. One demands a bigger down payment upfront. The other lets you put less cash down but carries mortgage insurance for years.
The median household income here is $87,760 annually. That's enough to qualify for either program on a typical West Hollywood purchase. The choice comes down to how much you have saved and what monthly payment fits your budget.
Conventional loans reward buyers with cash saved. Put down 20% and you skip mortgage insurance entirely. Put down 5% to 19% and you'll pay PMI until you hit 80% equity. The trade-off is simple: more cash at closing, lower monthly payment.
West Hollywood's $1,249,125 conforming limit gives conventional buyers plenty of room. Credit score floors sit around 620, but lenders prefer 680 or higher for the best rates.
FHA loans open the door with just 3.5% down. That's a meaningful advantage if your savings are tight. The catch: mortgage insurance sticks around for the full loan term, not just until you hit 80% equity. Plan on that cost for as long as you own the home.
FHA borrowers need a 580 credit score minimum, though 640+ gets better rates. The program works well in West Hollywood when you're stretching to buy and need every dollar of savings to stay liquid. The 2026 FHA limit matches the conforming cap at $1,249,125.
The down-payment gap is real. FHA lets you start with 3.5% saved. Conventional typically asks for 5% to 10%. On a typical West Hollywood purchase, that difference is thousands of dollars you keep in the bank with FHA.
Mortgage insurance is the long game. Conventional PMI vanishes once you own 20% of the home. FHA mortgage insurance never leaves unless you refinance into a conventional loan later. That's a permanent cost difference that compounds over 30 years.
Pick conventional if you have $50,000 or more saved for down payment and closing costs. Your credit is 680 or higher. You plan to stay in the home at least seven years.
Pick FHA if your savings are under $40,000 and you need to preserve liquidity. Your credit sits between 580 and 680. You're buying your first home in West Hollywood and want the lowest barrier to entry.
FHA mortgage insurance is permanent on loans with less than 10% down. Refinancing into a conventional loan later is your only exit. Plan on carrying the insurance cost for the life of the loan unless you refinance.
Yes — 20% down is the only way to skip PMI on a conventional loan. Put down 5% to 19% and PMI applies until you reach 80% equity. Then it cancels automatically.
Conventional typically closes in 30–45 days. FHA takes 40–50 days due to appraisal and underwriting requirements. Both are standard timelines; the difference is modest.
Conventional requires 620 minimum; 680+ gets the best rates. FHA requires 580 minimum; 640+ is preferred. West Hollywood lenders often have overlays that push both floors higher.
Conventional PMI runs 0.5% to 1.5% annually on your loan balance. FHA mortgage insurance costs 0.55% annually plus an upfront fee of 1.75%. FHA costs more per month but cancels sooner on conventional.