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in Ione, CA
Ione's mix of historic properties and newer builds in Amador County attracts both traditional buyers and veterans looking for rural living. Choosing between conventional and VA financing comes down to your military service status and how much cash you want to put down.
Most veterans automatically assume VA is their only option, but conventional loans can win on certain properties. We'll break down the real differences so you know which one gets you to closing faster in Ione.
Conventional loans are what most non-veteran buyers use to finance homes in Ione. You'll need at least 3% down, though 20% down eliminates private mortgage insurance and gets you better rates.
Credit score requirements sit around 620 minimum, but you'll want 680+ for competitive pricing. These loans cap at conforming limits, which in Amador County covers most homes without issue.
VA loans let eligible veterans and active-duty service members buy in Ione with zero down payment and no monthly mortgage insurance. You'll pay a one-time funding fee that ranges from 1.4% to 3.6% depending on down payment and whether it's your first VA loan.
The VA sets minimum property standards that can flag issues on older Ione homes. Appraisals take longer than conventional, and sellers sometimes prefer conventional offers even when the terms match.
Down payment separates these loans most dramatically. VA borrowers can finance 100% while conventional buyers need skin in the game. But that VA funding fee of 2.3% for zero-down first-time use adds real cost that many borrowers miss.
Property condition matters more with VA loans because appraisers flag peeling paint, roof issues, and safety hazards that must be fixed before closing. Conventional appraisals note these issues but won't kill the deal. In Ione's older housing stock, this difference closes or saves deals weekly.
If you're eligible for VA benefits and buying a newer or well-maintained Ione home, VA wins on cost. Zero down and no PMI saves you thousands monthly compared to a 3% down conventional loan with mortgage insurance.
Go conventional when buying a fixer-upper that won't pass VA property standards or when sellers have multiple offers and prefer conventional financing. Also choose conventional if you're buying a second home or investment property, since VA limits how you can use the benefit.
VA loans work on most single-family homes and approved condos, but the property must meet minimum standards. Older homes with deferred maintenance often need repairs before VA approval.
Yes, conventional loans require private mortgage insurance when you put down less than 20%. PMI typically costs 0.5-1% of the loan amount annually.
VA rates typically run 0.25-0.5% below conventional because the government guarantee reduces lender risk. Rates vary by borrower profile and market conditions.
The VA funding fee is set by the Department of Veterans Affairs and cannot be negotiated. You can roll it into your loan amount instead of paying upfront.
Conventional loans typically close 3-7 days faster because VA appraisals take longer and may require property repairs. Expect 30-35 days for conventional, 35-45 for VA.