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in Lodi, CA
Lodi buyers typically choose between conventional and FHA financing. Your credit score and down payment amount usually determine which path makes sense.
FHA loans dominate with first-time buyers here. Conventional loans win when you have stronger credit and at least 10% down.
Conventional loans require 620 minimum credit, but you need 740+ to get the best rates. You can put down as little as 3%, but 20% eliminates private mortgage insurance entirely.
PMI costs 0.5% to 1% annually until you hit 20% equity. Once you reach 78% loan-to-value, it drops automatically. Lower rates than FHA if your credit exceeds 680.
FHA accepts 580 credit scores with 3.5% down. You pay 1.75% upfront mortgage insurance premium plus 0.55% to 0.85% annual premium that stays for the entire loan term.
Monthly payments run higher than conventional due to mortgage insurance that never drops off. The trade-off is easier approval with lower credit scores and smaller down payments.
The mortgage insurance gap matters most. FHA charges insurance for 30 years, adding $150 to $300 monthly on typical Lodi home prices. Conventional drops PMI once you build equity.
Credit pricing differs sharply between programs. A 640 score costs nearly the same as 740 with FHA. Conventional penalizes scores under 700 with higher rates and bigger PMI bills.
Choose FHA if your credit sits between 580 and 680 or you have limited cash for down payment. The insurance costs more over time, but approval odds beat conventional significantly.
Go conventional with 700+ credit and at least 10% down. Your monthly payment stays lower, and PMI disappears once you hit 20% equity. Refinance from FHA to conventional once your credit improves.
No. FHA mortgage insurance stays for the loan's full term with less than 10% down. Refinancing to conventional is the only way to eliminate it after building equity.
620 minimum, but expect higher rates below 680. You need 740+ credit to access the best conventional pricing in San Joaquin County.
Conventional costs less with 700+ credit and 10%+ down. FHA runs cheaper only when your credit falls below 660 and you're putting down less than 10%.
1.75% upfront plus 0.55% to 0.85% annually. On a $400,000 loan, expect $7,000 upfront and $220 to $280 monthly that never drops off.
Yes. Most borrowers refinance to conventional once they reach 20% equity and 680+ credit. This eliminates ongoing mortgage insurance costs.