FHA or Conventional? First Yorba Linda Home Guide
By Wendy Rawley, Straight Talk. Clear Guidance. Real Results.
(The Wendy Rawley Team)
Which Loan Product Actually Saves You Money?Every first-time buyer in Yorba Linda asks the same question: "Should I go FHA or conventional?"The answer isn't one-size-fits-all, and choosing wrong can cost you tens of thousands over the life of your loan.The 3.5% Down MythFHA's low down payment sounds perfect, but the mortgage insurance premium stays with you for the life of the loan if you put down less than 10%. On a $950,000 Yorba Linda home (the median), that's $792/month in PMI alone.Conventional loans let you drop PMI at 80% loan-to-value, often within 5-7 years in our appreciating market.Credit Score Sweet SpotBelow 680? FHA pricing may beat conventional. Above 720? Conventional rates and terms win almost every time.Between 680-720? You need to model both scenarios with your lender...
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