Loading
in Pleasanton, CA
Pleasanton buyers choosing between FHA and VA loans are weighing two very different paths to homeownership. FHA requires a down payment starting at 3.5% and works for most borrowers.
VA offers zero down for eligible veterans and active-duty service members. The 2026 loan limit for both programs in Pleasanton is $1,249,125. At current rates, both programs price nearly identically on a typical purchase.
FHA at 5.875% works when you have limited savings but solid credit. The 3.5% down requirement keeps more cash in your bank account at closing.
MIP (mortgage insurance) stays for the life of the loan if you put down less than 10%. FHA accepts credit scores as low as 580 and allows gifts for the down payment.
VA at 5.875% eliminates the down-payment requirement entirely for qualifying veterans. Zero down means the full purchase price rolls into the loan, and no mortgage insurance applies.
The funding fee (2.15% on first use, zero down) replaces PMI and can be rolled into the loan. VA underwriting moves quickly and requires a Certificate of Eligibility.
FHA demands a down payment; VA does not. This gap matters most when savings are tight or you want to preserve cash for closing costs and reserves.
FHA carries MIP for the life of the loan above 90% LTV. VA's funding fee is a one-time cost rolled into the loan balance. Over 30 years, FHA's ongoing insurance cost typically exceeds VA's upfront fee for zero-down buyers.
FHA is right for non-military buyers with limited savings but decent credit. If you have 3.5% to 5% down and a 620+ FICO, FHA gets you into a home faster than waiting to save more.
VA is right for eligible veterans and active-duty service members who want to avoid the down-payment hurdle entirely. If you qualify, VA's zero-down structure and lack of mortgage insurance make it the stronger financial choice.
Yes. You'll need a Certificate of Eligibility from the VA before applying. Active-duty service members, veterans, and surviving spouses can request one online through VA.gov.
Yes. FHA accepts credit scores as low as 580, though rates may be higher than at 640+. Most lenders require 580+ FICO and will approve you if income and debt ratios align.
VA typically costs less if you qualify. FHA's lifetime MIP adds up over 30 years. VA's 2.15% funding fee is paid once and rolled into the loan. At identical rates, VA's total cost is lower.
Yes. FHA allows down payments from 3.5% up to 20% or more. Putting down 10% or more means MIP cancels after 11 years instead of lasting the life of the loan.
The monthly P&I payment is $4,437 on a $750,000 FHA loan at 5.875% interest. This scenario assumes 740 FICO and 96.5% LTV, priced June 13, 2026. MIP adds to this amount.