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in Dinuba, CA
Dinuba buyers face a clear choice: conventional loans with lower lifetime costs or FHA loans with easier entry requirements. Most deals in Tulare County come down to your down payment and credit score.
Both loans work for primary residences in Dinuba. The right choice depends on how much cash you have upfront and what your credit report looks like. Let's break down what actually matters for approval.
Conventional loans require 3% down minimum for first-time buyers, 5% for repeat buyers. You'll need 620+ credit for most programs, though 680+ gets better rates. No upfront mortgage insurance if you put down 20% or more.
Monthly mortgage insurance drops off automatically at 78% loan-to-value. Rates beat FHA pricing once you hit 740+ credit. Conventional works well for Dinuba buyers with solid credit who want to avoid lifetime insurance costs.
FHA loans accept 3.5% down with 580+ credit scores. You'll pay 1.75% upfront mortgage insurance plus 0.55-0.85% annual premiums. Credit scores below 620 still qualify, which conventional lenders typically reject.
Monthly mortgage insurance stays for the loan's life on most FHA deals. Sellers can contribute up to 6% toward your closing costs versus 3% on conventional. FHA makes sense for Dinuba buyers with limited cash or credit challenges.
Credit requirements split these options. Conventional demands 620 minimum and rewards scores above 740 with rate cuts. FHA accepts 580 scores but charges the same insurance regardless of credit strength.
Mortgage insurance costs diverge sharply. Conventional insurance drops off after you hit 78% LTV through payments or appreciation. FHA insurance never cancels unless you refinance to conventional later. On a 30-year loan, that's a $30,000-50,000 difference in total payments.
Choose FHA if your credit sits between 580-680 or you're maxed out on down payment savings. The forgiving approval standards outweigh the insurance costs when conventional lenders won't approve you. FHA also works if you need seller concessions to cover closing costs.
Pick conventional if you score 680+ and can manage 5% down. You'll pay less monthly and build equity faster without permanent insurance. Plan to refinance from FHA to conventional once you hit 20% equity and 680+ credit to dump the lifetime insurance drag.
Yes, conventional loans accept 3% down for first-time buyers and 5% for repeat buyers. You'll pay mortgage insurance until you hit 20% equity, but it costs less than FHA insurance.
FHA requires 580 minimum for 3.5% down. Conventional needs 620 minimum, but you'll get better rates at 680+ and best pricing at 740+.
FHA charges 0.55-0.85% of your loan amount annually, split into monthly payments. On a $300,000 loan, that's $137-212 per month for the entire loan term.
Both take 30-45 days typically. FHA appraisals include stricter property standards, which occasionally delay closing if repairs are needed.
Yes, if FHA is your only approval path now. Refinance to conventional once you reach 20% equity and 680+ credit to eliminate lifetime insurance costs.