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in El Cajon, CA
El Cajon buyers face a real choice: FHA or conventional. Your credit score and savings decide which one actually works.
We run these side-by-side daily across 200+ lenders. The right call depends on your numbers, not generic advice.
Conventional loans aren't government-backed. Lenders take on the risk, so they want strong credit — typically 620 minimum, 740+ for best rates.
Put down 20% and you skip private mortgage insurance entirely. That saves real money every month compared to FHA.
FHA loans are insured by the federal government. That lets lenders approve borrowers with 580 credit scores and just 3.5% down.
The tradeoff is mortgage insurance — an upfront premium plus monthly MIP for the life of the loan in most cases.
HousingWire flagged the 30-year fixed hitting 6.57% recently. At that rate, FHA's mortgage insurance costs matter more than ever for monthly cash flow.
FHA mortgage insurance never drops off on most loans. Conventional PMI cancels at 80% loan-to-value — a major long-term advantage.
San Diego County FHA loan limits are set federally. Conventional conforming limits run higher, giving you more room on purchase price.
Score below 620? FHA is your only real path here. Score above 700 with solid savings? Conventional almost always wins on total cost.
First-time buyers short on cash often start with FHA, then refinance to conventional once equity builds. That's a legitimate strategy in El Cajon's market.
Rates vary by borrower profile and market conditions. Run both scenarios with real numbers before committing to either path.
Yes. FHA allows up to 4-unit properties if you live in one unit. Rental income from other units can help you qualify.
Conventional conforming limits typically run higher than FHA limits. Check current county limits before assuming FHA covers your purchase price.
FHA is more flexible on credit and debt ratios. Conventional sets a higher bar but costs less for well-qualified borrowers.
On most FHA loans with less than 10% down, MIP stays for the life of the loan. Put down 10%+ and it drops after 11 years.
Yes — refinancing into conventional once you hit 20% equity is a common move. It eliminates the ongoing MIP cost.
Conventional offers are sometimes preferred by sellers. Some sellers view FHA appraisal requirements as a risk to the deal.