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in Half Moon Bay, CA
Half Moon Bay home prices justify serious down payment math. Conventional and FHA loans take opposite approaches to upfront cash and monthly costs.
FHA lets you buy with 3.5% down but adds mortgage insurance for life on most loans. Conventional requires more cash upfront but drops PMI once you hit 20% equity.
Conventional loans need stronger credit—typically 620 minimum, but 740+ unlocks the best rates. You pay PMI below 20% down, but it drops automatically at 78% loan-to-value.
These loans work for coastal buyers who can handle bigger down payments. No upfront funding fee means more cash stays in your pocket at closing.
FHA accepts 580 credit scores with 3.5% down. You pay 1.75% upfront mortgage insurance plus 0.55-0.85% annually—and it sticks for the loan's life on 30-year terms.
Sellers can cover up to 6% of closing costs, double what conventional allows. That flexibility helps cash-tight buyers in expensive markets like Half Moon Bay.
The mortgage insurance gap drives the biggest cost difference. FHA charges 1.75% upfront—$8,750 on a $500k loan—then annual premiums that never disappear. Conventional PMI costs more monthly but vanishes at 78% LTV.
Credit standards matter more on conventional. A 650 score might price you out, while FHA approves it. But higher FHA insurance often cancels the rate advantage within three years.
Choose FHA if you have under 10% down and need seller concessions to close. The upfront costs stay lower even with lifetime insurance. Plan to refinance once you hit 20% equity to dump that monthly premium.
Go conventional if you can put down 10-20% or have 740+ credit. You'll pay less over time as PMI drops. Rates may shift later in 2026, but the insurance structure won't—make that your deciding factor.
Only if you put down 10% or more—then it drops after 11 years. Below 10% down, it stays for the full 30-year term unless you refinance.
Yes. San Mateo County FHA limits reach $1,249,125 for single-family homes as of 2026. That covers most coastal properties outside luxury tiers.
Conventional costs less long-term if your credit exceeds 720. FHA wins with lower scores or when you need maximum seller concessions.
1.75% of the loan amount, typically rolled into your mortgage. On a $600k loan, that's $10,500 added to your principal balance.
Yes, once you hit 20% equity and meet conventional credit standards. Most borrowers refinance within 3-5 years to eliminate FHA insurance.