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in Whittier, CA
Most Whittier buyers can qualify for either a conventional or FHA loan. The right choice depends on your down payment savings, credit score, and how long you plan to own the property.
FHA looks easier upfront with 3.5% down. But conventional often costs less over time if you can put down 10% or more.
Conventional loans offer the lowest total cost if you have solid credit and at least 10% down. You avoid upfront mortgage insurance and can cancel PMI once you hit 20% equity.
Lenders prefer 620+ credit, though 680+ gets you the best rates. These loans work for primary homes, second homes, and investment properties across Whittier.
FHA loans let you buy with just 3.5% down if your credit is 580 or higher. The government insurance makes lenders more flexible on credit and debt ratios.
You pay 1.75% upfront mortgage insurance plus monthly premiums for the loan's life. This adds cost but gets you approved when conventional won't work.
Down payment separates these loans first. FHA needs 3.5% minimum while conventional starts at 3% but prices better at 5-10% down. Credit matters more for conventional — you'll pay steep rate hits below 680.
Mortgage insurance is where conventional pulls ahead long-term. FHA charges 1.75% upfront plus permanent monthly premiums. Conventional PMI costs less monthly and cancels at 20% equity.
Choose FHA if your credit is below 640 or you can only put down 3.5-5%. The flexible approval standards matter more than the extra insurance cost when you're getting started.
Go conventional if you have 680+ credit and 10%+ down. You'll save thousands on insurance over five years. Also required if you're buying a Whittier rental property or second home.
Yes, you can refinance once you have 20% equity. Many Whittier buyers start FHA then refi to conventional to drop mortgage insurance.
Both take 30-40 days typically. Conventional may move slightly faster since appraisals are less strict than FHA property requirements.
FHA caps at $644,000 in Los Angeles County for 2024. Conventional goes higher but costs more above conforming limits.
620 is the floor but expect rate penalties below 680. You get best pricing at 740+ credit score.
Your offer will show the loan type. Some Whittier sellers prefer conventional because FHA appraisals are stricter on property condition.