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in Rancho Cucamonga, CA
Most Rancho Cucamonga buyers face the same fork in the road: conventional or FHA. The right answer depends on your credit, your down payment, and how long you plan to hold the loan.
These are the two most common loan types we run for IE buyers. Understanding the tradeoffs saves you money — sometimes thousands over the life of the loan.
Conventional loans aren't government-backed. That means lenders set stricter credit standards — typically 620 minimum, but 740+ gets you the best rates.
Put 20% down and you skip mortgage insurance entirely. That's a big monthly savings on Rancho Cucamonga price points.
FHA loans require just 3.5% down with a 580 credit score. Buyers with scores between 500–579 can still qualify — but they need 10% down.
The catch is mortgage insurance. FHA charges an upfront premium plus a monthly premium. It doesn't cancel automatically for most borrowers.
The biggest difference is mortgage insurance. Conventional PMI cancels once you reach 20% equity. FHA's monthly MIP typically stays for the loan's life — unless you refinance out.
Bankrate's latest survey shows 30-year conforming rates at 6.27% as of March 2026. Conventional rates at that level hit harder than FHA rates, but FHA's lifetime MIP often erases that advantage over time.
Strong credit and 10–20% down? Conventional almost always wins. You'll pay less over time once you factor in FHA's lifetime mortgage insurance.
Credit below 680 or down payment under 5%? FHA is usually the cleaner approval. Don't force a conventional loan your file isn't ready for.
FHA allows 3.5% down with a 580+ score. Conventional goes as low as 3% but requires stronger credit to qualify.
Not easily. FHA MIP typically lasts the full loan term. You'd need to refinance into a conventional loan to remove it.
Conventional is stricter on credit and debt ratios. FHA allows higher DTI and is more forgiving of past credit problems.
FHA rates are often slightly lower. But lifetime MIP adds to FHA's true cost — compare total monthly payment, not just rate.
Sellers sometimes prefer conventional offers. FHA has stricter property condition requirements that can complicate certain deals.
FHA requires 580 for 3.5% down, or 500 with 10% down. Conventional typically requires 620 minimum. Rates vary by borrower profile and market conditions.