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in West Hollywood, CA
West Hollywood's condo market and multi-unit properties create unique loan scenarios. FHA lets you buy with 3.5% down but adds mortgage insurance for life on most loans.
Conventional loans require higher credit and bigger down payments. But you can drop PMI once you hit 20% equity, which matters in a market where property values shift fast.
Conventional loans reward strong credit with lower rates and less restrictive property rules. You need 620 minimum credit, though 740+ gets you the best pricing.
Down payments start at 3% for first-time buyers, 5% for everyone else. PMI costs 0.3-1.5% annually but cancels automatically at 78% loan-to-value.
West Hollywood's older buildings rarely face appraisal issues with conventional financing. Lenders care less about property condition than FHA does.
FHA loans open doors for buyers with thin credit files or past financial bumps. You can qualify with 580 credit and just 3.5% down.
The trade-off: upfront mortgage insurance of 1.75% plus annual premiums of 0.55-0.85%. On loans over $726,200, you pay MIP for the loan's life unless you refinance.
Not every West Hollywood condo is FHA-approved. Older buildings with deferred maintenance often fail FHA's stricter property standards.
Credit scores create the biggest split. FHA accepts 580, conventional wants 620 minimum. But conventional rewards high scores with rate discounts FHA doesn't offer.
Mortgage insurance works differently. FHA charges it forever on most loans. Conventional lets you cancel it at 20% equity, saving $200-400 monthly on a $700k loan.
Property standards matter in West Hollywood's older stock. FHA requires chipped paint fixes and handrail repairs. Conventional lenders rarely flag cosmetic issues.
Choose FHA if your credit sits below 640 or you can't scrape together more than 5% down. The insurance costs sting, but you're in the game.
Go conventional if you have 680+ credit and can put down 5-10%. You'll pay less monthly and drop PMI in a few years as West Hollywood values appreciate.
Planning to stay long-term? Conventional wins on total cost. Buying a starter condo for 3-5 years? FHA's lower entry barrier might be worth the insurance premium.
Only if the building is FHA-approved. Many older West Hollywood condos don't meet FHA's ownership concentration and reserve requirements.
FHA charges 1.75% upfront plus 0.55-0.85% annually. Conventional PMI runs 0.3-1.5% yearly but drops at 20% equity.
Both allow up to 4 units. FHA requires you live in one unit and has stricter condition standards than conventional.
620 minimum gets you approved. 740+ unlocks the lowest rates and cheapest PMI pricing from most lenders.
Yes, refinance to conventional once you hit 20% equity. That's the only way to drop FHA's lifetime insurance premium.