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in Amador City, CA
Both FHA and VA loans offer government backing with easier qualifying than conventional mortgages. The right choice depends on whether you have military service and how much you can put down.
FHA loans work for any qualified borrower while VA loans require military eligibility. Most veterans choose VA when available because it eliminates mortgage insurance and down payment requirements.
FHA loans let you buy with 3.5% down if your credit score hits 580. You'll pay mortgage insurance premiums both upfront (1.75% of loan amount) and monthly for the life of the loan.
These loans accept debt-to-income ratios up to 50% in many cases. Credit scores as low as 500 qualify with 10% down, though most lenders set their own 580 minimum.
VA loans require zero down payment for eligible veterans and service members. You pay a one-time funding fee (typically 2.3% for first use) but no monthly mortgage insurance at any loan-to-value ratio.
The program allows 100% financing with competitive rates and no maximum loan amount. Sellers can pay all your closing costs, and credit requirements are more flexible than conventional loans.
The VA funding fee costs less over time than FHA mortgage insurance. FHA charges 0.55% to 0.85% monthly plus 1.75% upfront, while VA charges only the one-time funding fee with no monthly cost.
Eligibility separates these programs completely. VA requires military service documentation through a Certificate of Eligibility, while FHA only requires you to meet credit and income standards.
If you qualify for VA, use it. The zero down payment and no mortgage insurance save thousands compared to FHA, even with the funding fee included.
Choose FHA when you lack military eligibility or when property doesn't meet VA standards. FHA accepts more property types and conditions than VA appraisers will approve.
Yes, both programs work throughout California including Amador City. VA and FHA have no geographic restrictions within the United States.
VA loans have lower payments because they eliminate monthly mortgage insurance. FHA's insurance typically adds $150-300 monthly depending on loan amount.
Most lenders want 580 minimum for FHA and 620 for VA. Some VA lenders approve 580 scores with strong compensating factors.
Veterans with service-connected disabilities are exempt from the funding fee. First-time VA users with 10%+ down pay reduced fees.
Not on loans with 3.5% down. FHA insurance stays for the full loan term unless you refinance to conventional or VA.