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in Irvine, CA
Irvine's median household income of $113,702 puts many buyers in range for both conventional and FHA loans. The choice hinges on down payment, credit score, and how long you plan to stay.
Both programs cap at $1,249,125 in 2026, so jumbo financing isn't needed for most purchases here. Newport Mesa schools are banning e-bikes starting in 2026-27, a sign of the area's family focus.
Conventional at 6.25% works best when you have solid savings. At 80% LTV, the payment is $4,618 with zero PMI.
Underwriting requires 740+ FICO, documented income, and two years of work history. PMI cancels automatically at 78% LTV and can be requested at 80% LTV.
FHA at 5.875% opens doors for buyers with limited savings. With just 3.5% down, you're borrowing at 96.5% LTV.
The monthly payment is $4,437 with mortgage insurance included. FHA mortgage insurance runs for life when down payment is under 10%.
Conventional demands 20% down to skip PMI; FHA lets you start with 3.5%. The down-payment gap is real. Conventional buyers with less than 20% down carry PMI until they reach 80% equity.
FHA's lifetime mortgage insurance on low-down purchases narrows the monthly advantage. The interest rate spread favors FHA here: 5.875% versus 6.25%. Conventional wins long-term if you can save 20% down.
Pick conventional if you have substantial savings and a 740 FICO. Your documented income qualifies easily. No PMI at 80% LTV means your payment stays predictable forever.
Choose FHA if you're ready to buy now but savings are tight. With 3.5% down, you're in the home at 96.5% LTV. Plan on lifetime mortgage insurance if your down payment stays under 10%.
Conventional at 6.25% on $750,000 is $4,618 monthly P&I. FHA at 5.875% on the same loan is $4,437. FHA's lower rate saves $181 per month.
Yes. At 80% LTV or higher, conventional loans carry no PMI. Below 80% LTV, PMI applies until you reach 78% equity.
No. FHA's minimum down payment is 3.5% for borrowers with 580+ FICO. This is the floor across all lenders.
Yes, but only if you put down 10% or more. With 10%+ down, MIP cancels after 11 years. Below 10% down, mortgage insurance runs for life.
Conventional typically requires 640-680 FICO; this scenario uses 740. FHA accepts 580+ FICO but may offer better rates at 620+.