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in Madera, CA
Most Madera buyers choose between conventional and FHA financing. The right call depends on your credit score, down payment, and how long you plan to stay.
We work with 200+ wholesale lenders. We see both loan types close every week — and know exactly where each one wins.
Conventional loans aren't backed by the government. Lenders set their own standards, but most require a 620+ credit score and 3-20% down.
No upfront mortgage insurance premium. If you put 20% down, you skip monthly PMI entirely — that's real monthly savings.
FHA loans are insured by the federal government. That backstop lets lenders approve borrowers with scores as low as 580 and just 3.5% down.
The tradeoff: FHA charges an upfront MIP (mortgage insurance premium) of 1.75% plus monthly insurance for the life of the loan in most cases.
Mortgage insurance is the biggest cost difference. FHA MIP doesn't cancel automatically unless you put 10% down and hold 11 years — conventional PMI drops at 80% LTV.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping over 10% week-over-week. At that rate, FHA's lower down payment helps buyers preserve cash — but the lifetime MIP eats into those savings over time.
Rates vary by borrower profile and market conditions. Conventional rates often run slightly lower for borrowers with strong credit above 740.
If your credit score is below 660, FHA usually gets you approved where conventional won't. Don't fight that — use the tool that works.
Above 700 with steady income and 5%+ down? Conventional saves money over time. The PMI cancels and you avoid FHA's upfront premium.
First-time buyers in Madera using gift money for the down payment often start with FHA. Refinancing into conventional later is a clear exit strategy once equity builds.
Yes. Once you have 20% equity, refinancing into conventional removes MIP entirely. Many Madera buyers use this as a planned two-step.
Conventional often wins long-term by dropping PMI. FHA's lifetime MIP makes it costlier over a full 30-year hold. Rates vary by borrower profile and market conditions.
FHA requires an appraisal that also checks basic property standards. It's stricter than conventional — sellers sometimes push back on FHA offers for that reason.
Most conventional lenders require 620 minimum. Below 700, expect higher rates — at 740+ you get the best pricing available.
FHA sets county-level loan limits. If your purchase price exceeds the Madera County FHA limit, you'd need conventional or jumbo financing instead.
Yes, with restrictions. On a primary home, conventional allows gift funds — but the rules vary by how much you're putting down. FHA is more flexible here.