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in Redlands, CA
Redlands buyers choosing between conventional and FHA loans face a real tradeoff. Conventional requires more cash down but avoids mortgage insurance. FHA opens the door with 3.5% down but adds insurance costs that stick around.
The 2026 conforming limit in Redlands is $832,750, while FHA tops out at $690,000. For homes under the FHA cap, the choice comes down to your savings and credit profile.
Conventional at 6.25% works when you have real savings behind you. At 80% LTV with no PMI, your payment stays predictable and low.
Conventional requires 740+ FICO and solid income documentation. Two years of work history and reserves beyond your down payment are standard.
FHA at 5.75% costs less per month but adds mortgage insurance. With only 3.5% down, you keep more cash at closing and in the bank.
FHA accepts 580+ FICO and works for buyers with limited savings. Mortgage insurance runs for the life of the loan if you put down less than 10%.
Conventional wins on long-term cost when you have 20% down. FHA wins on upfront cash and speed to close for buyers with modest savings.
The payment difference here is $241 per month in conventional's favor at the same loan amount. But FHA lets you buy with $160,000 less cash at closing.
Pick conventional if you have $160,000+ saved and a solid job history. You'll skip mortgage insurance and build equity faster every month.
Pick FHA if your savings are under $30,000 or you're self-employed. The lower down payment and flexible credit rules matter more than the insurance cost.
Conventional at 6.25% runs $4,618/month on a $750,000 loan. FHA at 5.75% is $4,377/month on the same amount. FHA's lower rate saves $241 monthly, but that assumes equal loan size.
Yes. At exactly 80% LTV (20% down), conventional has no PMI. Below 80% LTV, PMI applies. PMI cancels automatically once you hit 78% LTV through principal paydown.
If your down payment is under 10%, MIP stays for the full 30-year loan. With 10% or more down, MIP cancels after 11 years of payments.
FHA requires 580+ FICO for the 3.5% down program. A 600 score qualifies. Conventional typically wants 740+ and has stricter income documentation rules.
Conventional goes up to $832,750 in 2026. FHA maxes out at $690,000. For homes above $690,000, conventional is your only agency option.