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in Woodlake, CA
Woodlake buyers typically choose between conventional and FHA financing. Your credit score and down payment size determine which option saves you money.
Most Tulare County first-time buyers lean FHA for the 3.5% down payment. Repeat buyers with solid credit usually get better deals going conventional.
Conventional loans require 620 minimum credit, though 740+ gets you the best rates. Put down 20% and you skip mortgage insurance entirely.
Down payments start at 3% for first-time buyers, 5% for repeat buyers. You pay PMI until you hit 20% equity, then it drops off automatically.
Loan limits reach $806,500 in Tulare County for 2024. Higher credit scores unlock rates typically 0.25-0.75% lower than FHA.
FHA accepts 580 credit with 3.5% down, or 500 credit with 10% down. This opens homeownership to Woodlake buyers rebuilding credit.
You pay 1.75% upfront mortgage insurance plus 0.55-0.85% annual premium. That annual premium stays for the loan's life if you put down less than 10%.
FHA loan limits hit $498,257 in Tulare County. Sellers can contribute up to 6% toward closing costs versus 3% on conventional loans.
Credit standards separate these loans most. Conventional denies borrowers under 620, while FHA approves them routinely.
Mortgage insurance works differently. Conventional PMI drops off at 20% equity. FHA mortgage insurance lasts for life unless you refinance.
Monthly payments favor conventional at 740+ credit. Below 680 credit, FHA often costs less despite the lifetime insurance premium.
Choose FHA if your credit sits below 680 or you're stretching to 3.5% down. The approval flexibility outweighs the lifetime insurance cost.
Go conventional with 740+ credit and 10%+ down payment. You'll pay less monthly and eliminate mortgage insurance faster.
Plan to refinance FHA to conventional once you hit 20% equity. This removes the lifetime insurance and typically lowers your rate.
Conventional requires 620 minimum, though 740+ gets best pricing. FHA accepts 580 credit with 3.5% down, or 500 credit with 10% down.
Only by refinancing to conventional once you have 20% equity. FHA mortgage insurance stays for the loan's life with under 10% down.
Depends on your credit score. Above 680 credit, conventional usually costs less. Below 680, FHA often wins despite lifetime insurance.
FHA requires 3.5% down minimum with 580 credit. Conventional starts at 3% for first-time buyers, 5% for repeat buyers.
Some prefer conventional because appraisals are less strict. FHA allows higher seller concessions though, which helps in negotiations.