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in Westlake Village, CA
Westlake Village sits right on the LA-Ventura county line, which means your loan choice affects how much house you can buy. Most borrowers here qualify for both conventional and FHA — the question is which one costs less over time.
Conventional loans offer lower monthly costs if you put 20% down. FHA loans let you buy with 3.5% down but charge mortgage insurance for life. Your credit score and down payment decide which path makes sense.
Conventional loans require 620+ credit and verify your income through W-2s or tax returns. You can put down as little as 3%, but anything under 20% means paying PMI until you hit 20% equity.
PMI drops off automatically at 78% loan-to-value or when you request it at 80%. Rates run lower than FHA if your credit tops 680. Loan limits go up to $806,500 in LA County for 2024, covering most Westlake Village properties.
FHA loans accept 580 credit scores with 3.5% down. They charge an upfront mortgage insurance premium of 1.75% plus annual MIP that never cancels unless you refinance.
You can buy with a 500-579 score if you put 10% down. Sellers can contribute up to 6% toward closing costs versus 3% on conventional. Debt-to-income ratios stretch to 50% or higher with compensating factors. FHA works well for first-time buyers or anyone rebuilding credit.
Credit standards separate these loans fastest. Conventional wants 620 minimum and rewards high scores with rate cuts. FHA starts at 580 but charges everyone similar mortgage insurance regardless of credit strength.
Mortgage insurance costs tell the real story. Conventional PMI runs $50-150 monthly on typical Westlake purchases and cancels at 20% equity. FHA charges 0.55%-0.85% annually and sticks around until you sell or refinance. On a $600,000 purchase, that's $275-425 monthly forever.
Down payment flexibility favors FHA initially. Both allow 3-3.5% down, but FHA lets sellers chip in more closing costs. Long-term costs favor conventional once you factor in permanent mortgage insurance.
Choose FHA if your credit sits below 650 or you need maximum seller concessions. The permanent mortgage insurance hurts, but it gets you approved when conventional won't. Plan to refinance to conventional once your credit improves.
Go conventional if you score 680+ or can put 10%+ down. You'll pay less monthly and the PMI disappears eventually. Even at 3% down, conventional costs less than FHA after year five in most scenarios. Run both options through actual payment calculators — the differences surprise people.
Yes, refinance once you hit 20% equity and 620+ credit. Most borrowers do this within 3-5 years to drop mortgage insurance.
Both close in 25-30 days typically. Conventional moves slightly faster because it skips FHA's appraisal requirements for property condition.
FHA requires homes meet minimum property standards. Condos need FHA approval, which eliminates some complexes conventional would accept.
Conventional PMI: $50-150 monthly, cancels at 20% equity. FHA MIP: $275-425 monthly on $600K loan, never cancels.
No. FHA requires 3.5% minimum with 580+ credit or 10% with 500-579 credit. Conventional also bottoms out at 3% down.