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in San Bernardino, CA
Choosing between Conventional and FHA loans affects your down payment, monthly costs, and approval chances. Both loan types serve San Bernardino homebuyers with different financial profiles.
Conventional loans work well for buyers with strong credit and larger down payments. FHA loans help first-time buyers and those with limited savings get into homeownership sooner.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers. Rates vary by borrower profile and market conditions.
These loans typically require higher credit scores and larger down payments. In return, you avoid mortgage insurance with 20% down and access better rates with strong credit.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements. Rates vary by borrower profile and market conditions.
FHA loans accept down payments as low as 3.5% and consider borrowers with credit challenges. You'll pay mortgage insurance premiums, but the accessibility makes homeownership possible sooner.
Down payment minimums separate these options significantly. Conventional loans often require at least 3-5% down but benefit most at 20%. FHA loans start at just 3.5% down.
Mortgage insurance works differently between the two. Conventional PMI cancels at 20% equity. FHA mortgage insurance typically lasts the entire loan term with minimum down payments.
Credit requirements favor FHA for those rebuilding their scores. Conventional loans reward excellent credit with lower rates. Your credit profile heavily influences which option costs less overall.
Choose FHA if you have limited savings or credit below 680. The lower down payment and flexible approval help you buy sooner in San Bernardino's competitive market.
Select Conventional if you have strong credit and at least 10% down. You'll likely pay less over time, especially with 20% down that eliminates mortgage insurance completely.
Work with a San Bernardino mortgage broker to compare actual costs. They'll calculate your specific payments and help you understand long-term savings for both options.
Yes, you can refinance from FHA to Conventional once you build 20% equity. This eliminates mortgage insurance and potentially lowers your rate with good credit.
Both take similar timeframes, typically 30-45 days. FHA appraisals may require additional property inspections that can add a few days to closing.
Both work for most price ranges. FHA has loan limits that may affect higher-priced properties, while Conventional offers more flexibility for expensive homes.
Only Conventional loans work for investment properties. FHA loans require you to occupy the home as your primary residence.
Closing costs are similar, though FHA requires an upfront mortgage insurance premium. Conventional may have slightly lower total costs with excellent credit.