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San Leandro buyers choosing between FHA and VA loans face two government-backed paths. FHA requires 3.5% down with a 580+ FICO score. VA offers zero down for eligible veterans and active duty.
The 2026 FHA and VA loan limits both reach $1,249,125. At that price point, monthly payments run similar on both programs. The real difference lies in who qualifies and what happens after closing.
FHA at 5.875% opens doors for buyers with modest credit and savings. The 3.5% down payment means you keep more cash after closing.
MIP (mortgage insurance premium) runs for the life of the loan if your down payment stays under 10%. With 10% or more down, MIP cancels after 11 years.
VA at 5.875% eliminates the down payment entirely for eligible borrowers. Zero down means the full purchase price plus the funding fee rolls into your loan.
The funding fee replaces traditional mortgage insurance and typically runs 2.15% on first use with zero down. If you have a 10% or higher VA disability rating, the funding fee disappears completely.
Local decision guide
Use this comparison to weigh FHA Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in San Leandro.
San Leandro buyers choosing between FHA and VA loans face two government-backed paths. FHA requires 3.5% down with a 580+ FICO score. VA offers zero down for eligible veterans and active duty.
The 2026 FHA and VA loan limits both reach $1,249,125. At that price point, monthly payments run similar on both programs. The real difference lies in who qualifies and what happens after closing.
FHA at 5.875% opens doors for buyers with modest credit and savings. The 3.5% down payment means you keep more cash after closing.
FHA and VA both hit 5.875% in this scenario, so the rate isn't the deciding factor. The payment difference comes from loan size: FHA borrows less than VA at 100% LTV.
VA's zero-down structure means no out-of-pocket down payment at closing. The funding fee gets rolled into the loan. FHA's upfront MIP (1.75%) also rolls in, but the smaller loan size keeps the payment lower.
FHA wins for non-military buyers in San Leandro with a FICO above 580. If you have modest savings and can document income, FHA's 3.5% minimum gets you into the market.
VA is the right choice for eligible veterans and active-duty service members. If you have a Certificate of Eligibility, VA's zero-down structure and lower underwriting friction beat FHA. The funding fee rolls into the loan.
No. FHA requires only 3.5% down. Mortgage insurance (MIP) applies regardless. With 10% or more down, MIP cancels after 11 years.
No. VA loans require a Certificate of Eligibility. You must be a veteran, active-duty service member, or surviving spouse.
Both show $4,437 monthly P&I at 5.875%. FHA borrows $750,000 at 96.5% LTV. VA borrows $750,000 at 100% LTV. The loan sizes differ.
Yes, unless your disability rating is 10% or higher. A 10%+ VA rating exempts you from the funding fee. Otherwise, the fee applies.
Both FHA and VA are priced at 5.875% in this scenario. Rate depends on your FICO, LTV, and lender. Shop multiple lenders to compare.
in San Leandro, CA