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in Angels Camp, CA
Angels Camp buyers often ask which government loan saves them more money. Both FHA and VA loans offer low-barrier entry to homeownership, but they serve different borrower types with distinct cost structures.
FHA loans work for anyone who qualifies. VA loans require military service but deliver unmatched terms. The right choice depends on your eligibility and how long you plan to own the property.
FHA loans let you buy with 3.5% down if your credit score hits 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that range from 0.55% to 1.05% based on loan size and down payment.
These loans accept higher debt ratios than conventional financing. Credit standards flex for buyers with past financial issues, including bankruptcies over two years old. Sellers can contribute up to 6% toward your closing costs in Angels Camp transactions.
VA loans require zero down payment for eligible veterans and service members. You pay a one-time funding fee between 1.4% and 3.6% depending on military category and whether it's your first VA loan use. No monthly mortgage insurance exists.
Lenders typically want 620+ credit but no official minimum exists. VA backs the loan so lenders take reasonable risks on qualified military buyers. The program caps what you pay in closing costs and bans prepayment penalties entirely.
The VA loan eliminates two massive FHA costs: the down payment and ongoing mortgage insurance. On a $400,000 Angels Camp home, FHA demands $14,000 down plus $283 monthly for mortgage insurance. VA needs $0 down with no monthly premium.
FHA serves all qualified buyers while VA restricts to military-connected borrowers. FHA upfront insurance runs 1.75% versus VA funding fees of 1.4% to 3.6%. FHA monthly insurance never drops off unless you refinance. VA has no monthly insurance at all.
Choose VA if you qualify through military service. The zero-down feature and absent mortgage insurance create savings that compound for years. Even with a higher funding fee, you come out ahead within 12-24 months of ownership.
Pick FHA when you lack VA eligibility or the property fails VA appraisal standards. Some Angels Camp homes with well water or septic systems face VA inspection challenges. FHA also works for manufactured homes built before June 1976 that VA won't touch.
No. Both programs require owner occupancy. You must live in the home as your primary residence, though VA allows multi-unit purchases if you occupy one unit.
Timeline depends more on your lender than loan type. VA appraisals sometimes take longer in rural areas, but both programs typically close in 30-40 days with responsive borrowers.
Some sellers worry about VA appraisal requirements. A strong offer with quick closing and minimal contingencies matters more than loan type in most transactions.
Yes through refinancing. Many veterans start with FHA then do a VA cash-out or rate-term refinance to eliminate mortgage insurance once they discover their eligibility.
Most Calaveras County lenders want 580+ for FHA and 620+ for VA. Some portfolio lenders go lower but rates increase and lender options narrow below those thresholds.