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in San Juan Bautista, CA
San Juan Bautista sits in San Benito County, where buyers often weigh conventional and FHA financing. Your credit score and down payment savings determine which path makes sense.
Conventional loans reward strong credit with lower costs. FHA opens the door for buyers with smaller down payments or credit challenges.
Conventional loans aren't government-backed, so lenders set their own standards. You'll typically need 620+ credit and at least 3% down, though 20% avoids mortgage insurance.
Rates beat FHA if your credit exceeds 740. Mortgage insurance drops off once you hit 20% equity, saving thousands over time.
FHA loans accept 580 credit with just 3.5% down. The government insurance lets lenders approve borrowers conventional underwriting would decline.
You'll pay upfront mortgage insurance (1.75% of the loan) plus annual premiums for the loan's life. That adds $200-300 monthly on a $500K purchase.
Credit is the dividing line. FHA accepts 580 scores; conventional wants 620 minimum. But conventional rewards 740+ with rates often 0.5% lower than FHA.
Mortgage insurance works differently. Conventional MI disappears at 20% equity. FHA charges it forever unless you refinance, making it costlier long-term despite the easier entry.
Choose FHA if your credit sits below 680 or you're scraping together the minimum down payment. The easier approval outweighs the insurance cost early on.
Go conventional with 700+ credit and 10%+ down. You'll pay less monthly and build equity faster without permanent insurance dragging on your payment.
FHA works for most single-family homes and approved condos. The property must meet FHA safety standards, which some older homes may not without repairs.
740 and above unlocks top-tier pricing. Every 20-point drop below that costs you in rate or fees.
Expect $7,875 upfront (often rolled into the loan) plus roughly $270 monthly. That monthly cost persists for the entire loan term.
If you have it, yes. If it drains your reserves, put 10% down and pay MI temporarily—it drops off later.
Absolutely. Many buyers start FHA, build equity and boost credit, then refinance conventional to dump the insurance.