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in Upland, CA
Two loan types dominate Upland home purchases: conventional and FHA. Which one fits you depends on your credit, down payment, and how long you plan to keep the loan.
Bankrate's lender survey shows 30-year rates at 6.27% as of March 2026. That rate environment makes the cost gap between these two programs matter more than ever.
Conventional loans aren't backed by the government. Lenders take on more risk, so they set stricter credit standards — typically 620 minimum, with better rates above 740.
Put down 20% and you skip mortgage insurance entirely. That saves hundreds per month and makes conventional the cheaper long-term option for strong borrowers.
FHA loans are insured by the federal government. That backing lets lenders approve borrowers with scores as low as 580 and down payments as low as 3.5%.
The tradeoff is mortgage insurance — both upfront and monthly. FHA mortgage insurance stays for the life of the loan if you put less than 10% down.
FHA costs less to get into. Conventional costs less to own long-term. That gap widens over a 30-year loan when you factor in permanent mortgage insurance on FHA.
Conventional loans also have no loan limit restrictions tied to government rules the same way. In San Bernardino County, FHA limits cap what you can borrow — check current county limits before assuming FHA covers your purchase price.
Strong credit and 10%+ saved? Conventional wins. You'll get better pricing and shed mortgage insurance faster — sometimes within a few years of purchase.
Credit below 680 or savings tight? FHA gets you in the door. Just run the full cost comparison. Permanent mortgage insurance adds up fast on a 30-year term.
Yes — refinancing into conventional once you have 20% equity removes mortgage insurance. That's a common exit strategy for FHA borrowers.
It depends on your credit and down payment. Rates vary by borrower profile and market conditions — run both scenarios before deciding.
Yes. FHA permits the full 3.5% down to come from a gift. Conventional loans also allow gifts but may require some of your own funds depending on the lender.
FHA limits are set by county and updated annually. Contact us for the current San Bernardino County limit before assuming FHA covers your target price.
Usually, yes. Above 740, conventional pricing is hard to beat. FHA's mortgage insurance costs often make it the pricier option at that credit tier.