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in Loomis, CA
Loomis buyers usually face a straightforward choice between conventional and FHA financing. Each loan type has different down payment rules, credit standards, and mortgage insurance costs.
The right pick depends on your savings, credit score, and how long you plan to own the home. Most Loomis borrowers qualify for both but save money with one over the other.
Conventional loans aren't government-backed, which gives lenders flexibility on terms and pricing. You need 620+ credit for most programs, though some lenders go lower for specific situations.
Put down 3% as a first-time buyer or 5% with previous homeownership. PMI drops off automatically at 78% loan-to-value, unlike FHA's lifetime premium.
Rates vary by borrower profile and market conditions. Stronger credit scores typically unlock better pricing and lower monthly insurance costs on conventional loans.
FHA loans come insured by the Federal Housing Administration, which lets lenders approve borrowers with 580 credit scores. You can put down just 3.5% with that credit level.
The tradeoff is mortgage insurance that never drops off unless you refinance. You pay 1.75% upfront plus 0.55-0.85% annually, regardless of how much equity you build.
FHA works well for buyers prioritizing low upfront costs over long-term savings. Sellers in Loomis accept FHA offers routinely, though appraisals tend to be stricter than conventional.
Credit standards separate these loans most clearly. Conventional wants 620+ with clean credit history. FHA approves 580 scores and tolerates recent credit issues better.
Mortgage insurance costs flip the affordability calculation. FHA charges more upfront and monthly, but conventional requires stronger credit to qualify for those lower costs.
Property standards matter in Loomis's older neighborhoods. FHA appraisers flag peeling paint, roof condition, and safety issues that conventional appraisers might pass.
Loan limits work differently too. Conventional goes to $806,500 in Placer County for 2024. FHA caps at $644,000, which covers most Loomis homes but not all.
Choose FHA if your credit sits below 620 or you're stretching to cover closing costs. The low down payment and flexible approval make sense when you need to buy now.
Go conventional if you have 620+ credit and can manage 3-5% down. You'll pay less monthly and the PMI drops off eventually, saving thousands over time.
Run the numbers both ways before deciding. A borrower with 680 credit often pays $150+ less monthly on conventional versus FHA for the same purchase price.
We shop your scenario across 200+ lenders to find which loan type prices better for your specific credit and down payment situation.
Yes, through refinancing once you hit 20% equity and your credit improves. This removes the lifetime FHA mortgage insurance premium.
Most sellers accept both equally. FHA appraisals are stricter, which can slow closings on older homes needing repairs.
Both take 30-40 days typically. Conventional might edge ahead slightly because the appraisal has fewer required repairs.
Yes, both accept gift funds from family. FHA allows 100% gifted down payment while conventional sometimes requires partial borrower contribution.
740+ unlocks top-tier pricing. You'll qualify at 620 but pay higher rates until your score improves.