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in San Leandro, CA
San Leandro sits in Alameda County — one of the pricier Bay Area markets. Choosing the right loan program here can save you tens of thousands.
FHA and VA loans both carry government backing. But they serve very different borrowers, and the gap between them is bigger than most people think.
FHA loans are insured by the Federal Housing Administration. You need 3.5% down with a 580 credit score — or 10% down if your score is 500 to 579.
Anyone can apply for FHA. That's the key advantage. You don't need military service, just steady income and a qualifying property.
The catch is mortgage insurance. FHA charges an upfront premium plus monthly MIP for the life of the loan on most cases.
VA loans are guaranteed by the Department of Veterans Affairs. Eligible veterans, active-duty members, and surviving spouses can buy with zero down.
There's no monthly mortgage insurance on VA loans. That alone saves hundreds per month compared to FHA — a real difference in the Bay Area.
VA does charge a funding fee upfront. Most borrowers roll it into the loan. Disabled veterans are typically exempt.
Bankrate flagged rates climbing to 6.19% as of March 2026. VA loans typically come in below that. FHA rates run slightly higher than VA on average. Rates vary by borrower profile and market conditions.
The mortgage insurance difference is the biggest factor for monthly costs. VA borrowers skip MIP entirely. FHA borrowers pay it every month — often $150 to $250 more per month in this price range.
Credit requirements are close but not identical. VA has no official minimum score set by the VA, though most lenders want 620. FHA bottoms out at 500 with conditions.
If you have VA eligibility, use it. Especially in San Leandro where prices are elevated, skipping a down payment and MIP is a massive financial advantage.
FHA makes sense if you don't qualify for VA. First-time buyers, non-military borrowers, and those rebuilding credit often land here. It's a real path to ownership.
One scenario where FHA might compete: if your seller won't accept VA offers. Some listing agents in the Bay Area still flag VA appraisals as a risk. We help our borrowers navigate that.
No. You pick one loan per property. If you're VA-eligible, most borrowers are better off using it over FHA.
No — VA rates typically come in lower. Rates vary by borrower profile and market conditions, so compare both at the same time.
Disabled veterans are typically exempt from the VA funding fee. All other eligible borrowers pay it, but it can be rolled into the loan.
The VA sets no official minimum, but most lenders require 620. We work with lenders across the spectrum — call us to review your profile.
Alameda County FHA loan limits are set above the national baseline to reflect Bay Area prices. Ask us for the current limit before you start your search.
Both FHA and VA close in roughly the same timeline. VA appraisals can take slightly longer — plan for that when writing offers.