Loading
in Visalia, CA
Most Visalia buyers qualify for either conventional or FHA financing, but the wrong choice costs thousands. Your credit score, down payment, and how long you plan to own the home determine which loan saves money.
Conventional loans reward strong credit with lower costs. FHA loans open doors for buyers with smaller down payments or credit challenges. The right fit depends on your financial snapshot today.
Conventional loans require 620 minimum credit, but you need 740+ to get the best pricing. Put down 20% and you skip mortgage insurance entirely—a huge savings in Visalia's market.
These loans cap at conforming limits set by Fannie Mae and Freddie Mac. You can put as little as 3% down, but expect PMI until you hit 20% equity. Rates beat FHA for borrowers with good credit.
FHA loans accept 580 credit scores with just 3.5% down. You can qualify with 500-579 credit if you put down 10%. This flexibility makes FHA the entry point for many first-time Visalia buyers.
Every FHA loan carries upfront mortgage insurance (1.75% of loan amount) plus monthly premiums for the life of the loan on most purchases. You also need the property to meet FHA appraisal standards—some Visalia fixers won't qualify.
Credit requirements separate these loans fast. Conventional needs 620 minimum but charges higher rates below 680. FHA accepts 580 and prices the same regardless of score—a win for credit-challenged buyers.
Mortgage insurance flips the script long-term. Conventional PMI cancels at 20% equity. FHA insurance stays for the loan's life unless you refinance. A $350,000 Visalia home shows this clearly: FHA costs $200+ monthly in insurance that never ends.
Choose FHA if your credit sits below 680 or you're stretching to afford 3.5% down. The lower barrier to entry outweighs higher long-term costs when you need to buy now. Plan to refinance to conventional once your credit improves.
Go conventional with 680+ credit and either 5% down or enough savings to hit 20%. You'll pay less monthly and own more equity faster. Tulare County buyers with stable W-2 income and clean credit save substantially over 30 years with this route.
Yes, refinance to conventional once you hit 20% equity and 680+ credit. This eliminates monthly mortgage insurance and often lowers your rate.
Conventional typically costs less at closing. FHA adds 1.75% upfront mortgage insurance—$6,125 on a $350,000 loan—that conventional avoids with 20% down.
Yes, but FHA requires the condo complex to be FHA-approved. Conventional has fewer restrictions on which Tulare County condo projects qualify.
FHA approves 580+ regularly. Conventional approves 620+ but prices jump significantly below 680, often making FHA cheaper despite higher insurance.
FHA allows up to 56% debt-to-income ratio. Conventional typically caps at 50%. Both require stable employment and documented income through tax returns and pay stubs.