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in San Leandro, CA
San Leandro buyers choosing between conventional and VA loans face a fundamental trade-off: down payment versus rate. Conventional at 6.25% requires 20% down to avoid PMI. VA at 5.875% requires zero down and no mortgage insurance.
The 2026 conforming limit in Alameda County is $1,249,125, so both programs work here. Median household income in the county is $126,240, which supports mortgages well into the conventional range.
Conventional at 6.25% works when you have substantial savings. At 20% down (80% LTV), you skip PMI entirely and lock in a predictable payment.
Underwriting requires 740+ FICO, documented income, and two years of work history. You'll need reserves beyond the down payment. The rate assumes a primary residence and 30-year term.
VA at 5.875% is for eligible veterans, active duty, and surviving spouses. Zero down means no savings required upfront. The funding fee (2.15% on first use) rolls into the loan instead of PMI.
The rate assumes a Certificate of Eligibility and primary residence. Underwriting is faster than conventional. You'll need 740+ FICO and documented income, but no down-payment reserves.
Local decision guide
Use this comparison to weigh Conventional Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in San Leandro.
San Leandro buyers choosing between conventional and VA loans face a fundamental trade-off: down payment versus rate. Conventional at 6.25% requires 20% down to avoid PMI. VA at 5.875% requires zero down and no mortgage insurance.
The 2026 conforming limit in Alameda County is $1,249,125, so both programs work here. Median household income in the county is $126,240, which supports mortgages well into the conventional range.
Conventional at 6.25% works when you have substantial savings. At 20% down (80% LTV), you skip PMI entirely and lock in a predictable payment.
The down-payment gap is the biggest difference. Conventional demands 20% in cash at closing. VA demands nothing upfront. That's a meaningful gap for buyers with limited savings.
The rate spread favors VA: 5.875% beats 6.25% by 37.5 basis points. On a $750,000 loan, that's $181 less per month on VA. Conventional's PMI would add another $200–$300 monthly until you hit 80% LTV.
Choose conventional if you have $187,500 saved and want to avoid the funding fee. You'll skip PMI entirely at 20% down. The higher rate stings, but you own equity from day one with no insurance cost.
Choose VA if you're an eligible veteran or active-duty service member. Zero down plus a lower rate means $181 less monthly. The funding fee is a one-time cost that's far cheaper than conventional PMI over time.
Yes. At 20% down (80% LTV), conventional loans skip PMI entirely. Below 20% down, PMI applies until you reach 78% LTV automatically or request cancellation at 80% LTV.
Conventional at 6.25% is $4,618 monthly P&I. VA at 5.875% is $4,437 monthly P&I. That's $181 less per month on VA, plus VA has no mortgage insurance.
Yes. VA loans are available to eligible veterans, active-duty service members, and surviving spouses with a Certificate of Eligibility. You don't need to be serving now.
No. VA funding fee is 2.15% on first use with zero down ($16,125 on a $750,000 loan). Conventional PMI would cost $200–$300 monthly until you reach 78% LTV, totaling far more.
Both conventional and VA require 740+ FICO for the rates shown. Conventional may go lower with compensating factors. VA has no published floor but lenders typically want 640+.