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in San Bruno, CA
San Bruno buyers face a choice most first-timers don't expect: FHA's low down payment or conventional's lower monthly cost. The difference in what you pay upfront versus what you pay monthly can swing your decision.
Both loans close deals in San Mateo County every day. FHA gets you in the door with 3.5% down. Conventional saves you money long-term if you can put 5-10% down and have solid credit.
Conventional loans give you the cleanest exit from mortgage insurance. Put down 20% and you never pay PMI. Put down less and your PMI drops off once you hit 20% equity through payments or appreciation.
You need a 620 credit score minimum, but rates improve dramatically at 700+. Debt-to-income can't exceed 50% in most cases. These loans work best when you have clean credit and steady W-2 income.
FHA loans let you buy with a 580 credit score and 3.5% down. That's the easiest entry point for San Bruno buyers with limited savings. You pay an upfront mortgage insurance premium of 1.75% plus annual premiums that never drop off.
Sellers know FHA appraisals can kill deals. The appraiser flags deferred maintenance that conventional appraisers might skip. Budget for repairs if you're buying an older San Bruno home that needs work.
The real cost difference shows up in monthly payments. FHA's 0.55% annual mortgage insurance premium on a $900k San Bruno home costs $412/month and never stops. Conventional PMI might run $200/month but drops off after a few years.
Credit score creates the biggest rate gap. At 680 credit, FHA often beats conventional rates. At 760 credit, conventional wins by 0.25-0.50%. That rate difference compounds over 30 years into real money.
Choose FHA if you have under 5% to put down and credit below 680. The low entry point outweighs the lifetime mortgage insurance. Plan to refinance to conventional once you build equity and improve your credit.
Choose conventional if you have 10%+ down and 700+ credit. You'll save thousands monthly once PMI drops. San Bruno's steady appreciation means you'll hit 20% equity faster than you think, especially in this market.
Yes, refinance to conventional once you hit 20% equity and 620+ credit. You'll drop the FHA mortgage insurance and likely get a better rate.
Both take 30-45 days typically. FHA appraisals can add time if the appraiser flags repairs, but underwriting timelines run similar.
FHA caps at $1,249,125 in San Mateo County as of 2026. Conventional goes higher but becomes a jumbo loan above that same limit.
Some will in competitive situations. FHA's stricter appraisal standards make sellers nervous about deals falling apart over minor repairs.
760+ gets you top pricing. Every 20 points below that costs you 0.125-0.25% in rate, which adds up fast on San Bruno home prices.