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in Foster City, CA
Foster City buyers choosing between conventional and FHA loans face a real tradeoff. Conventional demands more cash down but skips mortgage insurance at 80% LTV.
FHA opens the door with 3.5% down and lower credit scores. MIP runs for the life of the loan if you put down less than 10%.
San Mateo County's median household income of $156,000 supports purchases well into the $900,000 range. Both programs work here, but the choice hinges on your savings and credit profile.
Conventional at 6.25% works best when you have substantial savings. At 80% LTV with 20% down, PMI disappears entirely.
Underwriting wants documented income and two years of work history. A 740 FICO qualifies easily, and the 30-year fixed locks your rate.
FHA at 5.875% opens doors for buyers with limited savings. The 3.5% minimum down payment keeps more cash at closing.
MIP runs for the life of the loan when down payment is below 10%. The monthly payment stays lower than conventional despite lifetime insurance cost.
Local decision guide
Use this comparison to weigh Conventional Loans and FHA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Foster City.
Foster City buyers choosing between conventional and FHA loans face a real tradeoff. Conventional demands more cash down but skips mortgage insurance at 80% LTV.
FHA opens the door with 3.5% down and lower credit scores. MIP runs for the life of the loan if you put down less than 10%.
San Mateo County's median household income of $156,000 supports purchases well into the $900,000 range. Both programs work here, but the choice hinges on your savings and credit profile.
The payment gap favors FHA by $181 per month on the same loan. Conventional demands 20% down; FHA lets you start with 3.5%.
Conventional kills PMI at 80% LTV and never returns. FHA's MIP sticks around for the life of the loan unless you put down 10% or more.
Conventional wins for buyers with substantial savings and a 740+ FICO. You skip PMI entirely at 20% down and avoid 30 years of mortgage insurance.
FHA suits buyers who've saved modestly and want to close faster. The lower rate and payment ease monthly cash flow, and you keep reserves for repairs.
Conventional at 6.25% costs $4,618 per month. FHA at 5.875% costs $4,437 per month. That's $181 less with FHA, but FHA's lifetime MIP adds cost over 30 years if down payment is below 10%.
Yes. At 80% LTV (20% down), conventional loans carry zero PMI. Below 80% LTV, PMI applies and cancels automatically at 78% LTV.
Yes. FHA allows 3.5% down minimum with a 580+ FICO score. The tradeoff is lifetime MIP if your down payment stays below 10%.
Both close in 30 to 45 days with standard documentation. Speed depends on your file quality and income verification, not the program itself.
Not directly. San Mateo's median household income is $156,000, which supports both programs. Your personal income and debt ratio matter more than the county median.