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in Rancho Cordova, CA
These two loans cover most purchases in Rancho Cordova. Choosing wrong costs you money every month.
FHA works for buyers with lower credit or limited savings. Conventional rewards stronger borrower profiles with better long-term costs.
Conventional loans aren't backed by the government. Lenders take on more risk, so they demand stronger credit and more assets.
The big win: no upfront mortgage insurance premium. PMI drops off once you hit 20% equity — FHA's insurance never does.
FHA loans are insured by the federal government. That backing lets lenders approve borrowers they'd otherwise turn down.
You can qualify with a 580 score and 3.5% down. Scores between 500–579 require 10% down.
Mortgage insurance is the sharpest difference. FHA charges it upfront and annually — often for the full loan term. Conventional PMI goes away.
HousingWire flagged the 30-year fixed hitting 6.57% recently, with applications dropping sharply. At those rates, FHA's lifetime MIP adds serious cost over time. Rates vary by borrower profile and market conditions.
If your score is below 640 or your savings are tight, FHA is probably your path into a Rancho Cordova home.
If your score is 700+ and you can put 5–10% down, run the conventional numbers. The lifetime savings on mortgage insurance are real.
Both go as low as 3–3.5% down. FHA requires 3.5% at 580+ credit. Conventional can go 3% for first-time buyers with strong credit.
Not easily. Most FHA loans carry MIP for the full loan term. The only exit is refinancing into a conventional loan once you have enough equity.
FHA allows as low as 580 with 3.5% down. Conventional requires at least 620, but rates improve significantly above 740.
Conventional offers can look cleaner to sellers. Some sellers assume FHA appraisals create extra hurdles, even though that's not always true.
Yes. FHA sets county-level loan limits — check current limits before assuming FHA covers your purchase price. Conventional conforming limits also apply.
For qualified borrowers, conventional typically wins long-term. FHA's lifetime MIP adds up fast, especially at higher loan amounts.