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in Suisun City, CA
Most Suisun City buyers choose between conventional and FHA financing. Each has different down payment rules, credit standards, and cost structures that affect your monthly payment.
Your credit score and cash reserves determine which option saves you money. A 640 score with 10% down might favor conventional, while 580 with 3.5% down likely means FHA.
Conventional loans require 620+ credit and typically 5-20% down. You avoid mortgage insurance once you hit 20% equity, which cuts your monthly payment hundreds of dollars.
Rates beat FHA for borrowers with 700+ scores and 10%+ down. These loans also have higher limits and no upfront insurance fees, keeping closing costs lower.
FHA loans accept 580 credit scores with just 3.5% down. You pay 1.75% upfront insurance plus annual premiums, but the low entry barrier makes homeownership accessible faster.
Credit dings under 640 often get better terms here than conventional. Solano County's FHA limit covers most Suisun City homes, and sellers know these loans close reliably.
FHA charges 1.75% upfront insurance and 0.55-0.85% annual premiums for the loan's life. Conventional drops insurance at 20% equity, potentially saving $200+ monthly on a $500K loan.
Credit score creates the biggest cost gap. A 680 score with 10% down usually pays less with conventional, while 620 with 5% down costs less via FHA despite the insurance.
Choose FHA if your score sits below 660 or you're putting down less than 10%. The insurance costs less than conventional's higher rate and PMI combined at these levels.
Go conventional with 680+ credit and 10%+ down. You'll refinance out of PMI within years and pay lower rates upfront. Run both scenarios with your actual numbers before deciding.
Conventional requires 620 minimum, though 680+ gets best pricing. FHA accepts 580 with 3.5% down or 500 with 10% down.
No, FHA insurance stays for the loan's life if you put down less than 10%. Conventional PMI drops automatically at 78% loan-to-value.
Conventional avoids FHA's 1.75% upfront insurance premium. On a $450K loan, that's $7,875 in additional FHA closing costs.
Sellers view both equally in normal markets. Conventional can close slightly faster since it skips FHA's property condition requirements.
Yes, refinancing to conventional once you hit 20% equity eliminates mortgage insurance. Most borrowers do this within 3-5 years.