Loading
in Chowchilla, CA
Most Chowchilla buyers face this choice: conventional loan with better rates or FHA loan with easier approval. Your credit score and down payment cash decide which path makes sense.
FHA loans dominate among first-time buyers in Madera County because you can qualify with 580 credit and 3.5% down. Conventional loans reward stronger profiles with lower monthly costs and no upfront insurance fees.
Conventional loans require 620 credit minimum and work best when you have 5-20% down. You avoid upfront mortgage insurance and can cancel PMI once you hit 20% equity.
Rates run lower than FHA when your credit exceeds 700. Lenders price these loans based on risk, so stronger borrowers see better terms. You also skip the lifetime mortgage insurance that FHA requires on loans with under 10% down.
FHA loans accept 580 credit with 3.5% down or 500 credit with 10% down. You pay 1.75% upfront mortgage insurance plus annual premiums of 0.55-0.85% based on loan amount.
These loans make sense when your credit needs work or you lack big down payment cash. Sellers in Chowchilla often accept FHA offers because appraisals have gotten more reasonable. The insurance never drops on loans under 10% down.
Credit standards split the two programs hardest. FHA approves borrowers two years after bankruptcy while conventional wants four years minimum. FHA also allows higher debt ratios up to 56.99% versus conventional's typical 50% cap.
Insurance costs flip based on your profile. Strong credit makes conventional cheaper because you avoid upfront fees and can cancel PMI. Weak credit makes FHA competitive because their rates stay flat regardless of score. Down payment under 5% usually points toward FHA unless your credit tops 740.
Choose FHA if your credit sits under 680 or you have under 5% down. The insurance costs more long-term but you get approved now instead of waiting to rebuild credit. Most Chowchilla buyers refinance to conventional within 3-5 years anyway.
Go conventional with 700+ credit and 10% down. You save $100-200 monthly on a typical Madera County home price. The break-even happens fast even when you pay slightly higher down payment. Rates vary by borrower profile and market conditions.
Yes, most buyers refinance to conventional once they hit 20% equity and 680+ credit. This drops the mortgage insurance and often lowers your rate.
Both take 25-35 days typically. FHA appraisals sometimes add a week if the appraiser flags repairs the seller must complete before closing.
Only if you put 10% or more down. Then it drops after 11 years. Under 10% down means you pay insurance for the full loan term.
Yes, but rules get stricter. You need 5% of your own funds on investment properties. Primary homes allow full gift funds on most programs.
Conventional goes higher. FHA caps at $498,257 in Madera County for 2024. Conventional conforming limit hits $766,550 statewide.