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in Vallejo, CA
Vallejo buyers face a real choice: go conventional or FHA. The right answer depends on your credit, savings, and how long you plan to hold the loan.
We shop both programs across 200+ wholesale lenders. Here's what actually matters when picking between them in Solano County.
Conventional loans aren't backed by the government. That means stricter credit requirements — typically 620 minimum — but better pricing if you qualify.
Hit 20% down and you skip mortgage insurance entirely. That saves real money every month compared to FHA.
FHA loans require just 3.5% down with a 580 credit score. If your score is between 500 and 579, you can still qualify with 10% down.
The catch: FHA charges mortgage insurance for the life of the loan in most cases. That adds up over time.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping sharply. At that rate, FHA's lower down payment matters more — but so does the lifetime MIP cost.
Conventional PMI (private mortgage insurance) drops off once you hit 20% equity. FHA MIP on a 30-year loan typically doesn't. That's the biggest long-term cost difference.
Conventional also beats FHA on seller perception. Some Vallejo sellers prefer conventional offers because they carry fewer inspection requirements.
If your credit is above 700 and you have 5-20% saved, conventional almost always wins on total cost. You'll likely get better pricing and no lifetime MIP.
If your score is below 620 or your savings are tight, FHA is your path into homeownership. Don't let perfect be the enemy of good — get in, build equity, refinance later.
Yes. Once you build 20% equity, refinancing into a conventional loan removes the FHA mortgage insurance premium. Many Vallejo buyers use this as a two-step strategy.
It depends on your down payment and credit. FHA can have lower rates but adds MIP. Conventional with strong credit often costs less monthly overall.
Yes. FHA sets county-level loan limits. If your purchase price exceeds the Solano County FHA limit, you'd need a conventional or jumbo loan instead.
Most conventional lenders want at least 620. You'll get significantly better pricing at 740 or above.
Sometimes. FHA has stricter property condition requirements. Sellers know this and may prefer conventional buyers in competitive situations.
FHA is often the entry point for first-timers with limited savings or credit history. But if you qualify for conventional, run both comparisons before deciding.