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in Campbell, CA
Campbell buyers face high prices on limited inventory. Your loan choice affects your down payment, monthly cost, and how competitive your offer looks to sellers.
Conventional loans demand more cash upfront but cost less monthly. FHA loans let you buy sooner with less saved, but you'll pay mortgage insurance for the life of the loan in most cases.
Conventional loans require 620+ credit and at least 3% down for primary homes. If you put down less than 20%, you'll pay private mortgage insurance until you hit 20% equity.
PMI drops off automatically once you reach 22% equity or when you request cancellation at 20%. This saves you thousands compared to FHA's lifetime mortgage insurance premium.
FHA loans accept 580 credit scores with 3.5% down. You can qualify with a 500 score if you bring 10% down, though most lenders set their own 580 floor.
You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums between 0.45-1.05%. For loans over 90% LTV, this insurance never drops off unless you refinance.
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 Campbell.
Campbell buyers face high prices on limited inventory. Your loan choice affects your down payment, monthly cost, and how competitive your offer looks to sellers.
Conventional loans demand more cash upfront but cost less monthly. FHA loans let you buy sooner with less saved, but you'll pay mortgage insurance for the life of the loan in most cases.
Conventional loans require 620+ credit and at least 3% down for primary homes. If you put down less than 20%, you'll pay private mortgage insurance until you hit 20% equity.
Down payment separates these loans less than most buyers think. Both start at 3-3.5%. The real cost difference shows up in monthly insurance payments and how long they last.
Conventional loans also win on loan limits. FHA caps at $832,750 in Santa Clara County as of February 2026, while conventional goes to $832,750 for conforming and higher for jumbo. Campbell's market often pushes past FHA limits.
Pick FHA if your credit sits between 580-680 or you need maximum debt-to-income flexibility. First-time buyers with limited savings often start here, then refinance to conventional after building equity.
Choose conventional if you have 680+ credit and can manage the down payment. You'll save on monthly costs and make stronger offers. With the Fed holding rates steady through early 2026, even small monthly savings compound significantly.
Yes. Conventional loans allow 3% down for primary homes. You'll pay PMI until you reach 20% equity, but the insurance costs less than FHA and cancels automatically.
740 or higher gets you top-tier pricing. Each 20-point drop below 740 typically costs 0.25-0.5% in rate, which adds up over 30 years.
It stays for the loan's life if you put down less than 10%. Put down 10% or more and it drops after 11 years, but most borrowers refinance before then.
Conventional financing makes your offer stronger. Sellers see it as more reliable since FHA appraisals scrutinize property condition more strictly than conventional appraisals.
Yes, through a refinance. Once you hit 20% equity and your credit improves, refinancing to conventional eliminates mortgage insurance and often lowers your rate.
You'll need conventional or jumbo financing. FHA caps at $832,750 in Santa Clara County, and many Campbell homes price above that threshold.