FHA vs Conventional · Fresno, CA
Both loan types can get you into a Fresno home — but the right choice depends on your credit score, down payment, and long-term goals. Our local team helps you compare and decide with confidence.
Side-by-side comparison
| FHA Loan | Conventional Loan | |
|---|---|---|
| Minimum Down Payment | 3.5% (580+ credit) | 3% (620+ credit) |
| Minimum Credit Score | 580 (or 500 with 10% down) | 620 typically |
| Mortgage Insurance | Required for life of loan (in most cases) | Drops off at 20% equity |
| Loan Limits (Fresno) | Set by FHA annually | Higher limits available |
| Debt-to-Income Ratio | More flexible (up to 57%) | Typically up to 45-50% |
| Best For | Lower credit, limited savings | Stronger credit, long-term savings |
Which one is right for you?
How it works
Credit score, savings, and income — we look at the full picture.
We compare your monthly payment and total cost under both loan types side by side.
No pressure. We explain everything clearly so you make the right call for your family.
Pre-approval in hand, you can shop for your Fresno home with confidence.
Free consultation. No hard credit pull. A Fresno loan specialist will follow up within one business day.
Frequently asked questions
Is FHA or conventional better for first-time buyers in Fresno?
It depends on your credit score and savings. FHA is generally better for buyers with lower credit scores or limited down payment funds. Conventional can be the smarter long-term choice if your credit is strong, since mortgage insurance eventually drops off.
Can I switch from FHA to conventional later?
Yes — once you have built enough equity in your home (typically 20%), you can refinance from an FHA loan into a conventional loan and eliminate the mortgage insurance premium. Many Fresno homeowners do exactly this.
What are the FHA loan limits in Fresno?
FHA loan limits are updated annually by the federal government and vary by county. In Fresno County the limit is set based on local median home prices. Our team can give you the exact current limit for your situation during your free consultation.
Do conventional loans require mortgage insurance?
Only if you put less than 20% down. Unlike FHA loans, conventional PMI automatically cancels once you reach 20% equity in your home — which can save you hundreds per month over the long run.
Which loan is faster to close in Fresno?
Both FHA and conventional loans typically close in 21-45 days. FHA loans require a specific appraisal process which can occasionally add time. Conventional loans can sometimes close faster, especially with strong borrower profiles.