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in Fairfield, CA
Fairfield buyers face a real choice: put more down and go conventional, or use FHA's flexibility to get in faster. Neither is universally better.
The right call depends on your credit score, down payment, and how long you plan to stay. We run both scenarios for every borrower we work with.
Conventional loans aren't backed by the government. Lenders take on the risk, so they set stricter credit and income standards.
The payoff: no upfront mortgage insurance premium, and PMI drops off once you hit 20% equity. FHA mortgage insurance never goes away without a refinance.
FHA loans are insured by the Federal Housing Administration. That backing lets lenders approve borrowers with lower scores and smaller down payments.
You pay for that flexibility. FHA requires an upfront mortgage insurance premium of 1.75% of the loan amount, plus monthly MIP for the life of the loan in most cases.
HousingWire flagged the 30-year fixed hitting 6.57% recently. At that rate, FHA's higher insurance costs compound fast — conventional becomes cheaper over time for borrowers who qualify.
Conventional loan limits for Solano County sit higher than what many Fairfield buyers need. FHA limits are generous enough here that most purchases fall within range.
Debt-to-income tolerance differs too. FHA allows up to 57% DTI in some cases. Conventional typically wants you under 45%. That gap matters for buyers carrying student loans or car payments.
If your score is below 680 or you have limited cash to close, FHA is usually the path of least resistance. You'll pay more over time, but you close.
Strong credit, stable W-2 income, and at least 5% down? Go conventional. You'll likely pay less per month and drop mortgage insurance years before an FHA borrower would.
We place loans across 200+ wholesale lenders. We price both options for every Fairfield buyer before recommending one. The answer isn't always obvious from the outside.
Yes — refinancing into conventional once you have 20% equity removes FHA mortgage insurance. Many borrowers do this within a few years.
Both can go as low as 3-3.5%. FHA requires 3.5% at 580+ credit. Conventional allows 3% for qualifying first-time buyers.
FHA allows DTI up to 57% in some cases. Conventional lenders typically cap around 45%. Higher debt loads usually point toward FHA.
Both close in similar timelines. FHA requires an FHA-approved appraiser, which can add a day or two in some cases.
Not always. At lower credit scores, FHA rates can beat conventional. At 740+, conventional almost always wins on total cost.
FHA limits in Solano County are set annually and cover most typical Fairfield price points. Higher-priced purchases may require conventional financing.