Loading
in Tulare, CA
Tulare buyers usually face a clear choice: put more down with a conventional loan or stretch with FHA's lower requirements. The right answer depends on your credit profile and how long you plan to stay in the home.
Most Tulare transactions work with either option. I see borrowers make mistakes by defaulting to FHA without checking if conventional saves them money long-term.
Conventional loans require at least 620 credit and typically 5-20% down. You pay private mortgage insurance below 20% down, but you can cancel it once you hit that equity threshold.
Rates often beat FHA if your credit exceeds 680. Conventional also wins for borrowers buying investment properties or homes above FHA loan limits, though Tulare prices rarely hit that ceiling.
FHA accepts 580 credit with just 3.5% down. You pay an upfront mortgage insurance premium plus annual premiums that stick around for the loan's life if you put less than 10% down.
FHA works well for first-time Tulare buyers or anyone rebuilding credit. The insurance costs more than conventional PMI, but approval odds are higher with bruised credit or thin work history.
Credit score creates the biggest gap. A 640 score might get 6.5% on FHA but 6.0% conventional. That half-point costs $50 monthly on a $350,000 Tulare home.
Mortgage insurance works differently too. FHA charges 1.75% upfront plus 0.55-0.85% annually for the loan term. Conventional PMI runs 0.3-1.5% annually but drops off at 20% equity, saving thousands over time.
Go FHA if your credit sits below 660 or you need minimal down payment. The insurance costs more, but getting approved matters first. Plan to refinance once your credit improves and equity builds.
Choose conventional with 680+ credit and 5-10% saved. You'll pay less monthly and own the option to drop insurance. Most Tulare buyers with stable W-2 income and decent credit save money going conventional from day one.
No. FHA requires owner occupancy. You need conventional or specialized investor financing for rental properties in Tulare.
740+ unlocks top-tier pricing. Each 20-point drop below that costs about 0.25% in rate, which adds up over 30 years.
Yes. FHA approves up to 50-57% DTI with compensating factors. Conventional typically caps at 45-50% depending on the lender.
Only by refinancing into conventional. FHA insurance stays for 11 years minimum, or the full loan term with under 10% down.
Both take 25-35 days typically. FHA adds a property inspection requirement, but that rarely delays closing in standard Tulare homes.