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in Antioch, CA
Choosing between a conventional loan and a VA loan in Antioch depends on your military service history and financial situation. Both options provide solid paths to homeownership in Contra Costa County, but they work differently.
Veterans and active-duty service members have access to VA loans with unique benefits that conventional borrowers don't receive. Understanding these differences helps you select the right financing for your Antioch home purchase.
Conventional loans are traditional mortgages not backed by any government agency. They offer flexible terms and competitive rates for borrowers who meet standard credit and income requirements.
These loans typically require a down payment ranging from 3% to 20% of the purchase price. Borrowers putting down less than 20% usually pay private mortgage insurance until they reach 20% equity.
Conventional financing works well for buyers with solid credit scores and stable employment. The loans can finance primary homes, second homes, and investment properties throughout Antioch.
VA loans are government-guaranteed mortgages exclusively for eligible veterans, active-duty service members, and qualifying surviving spouses. The Department of Veterans Affairs backs these loans, reducing lender risk.
The biggest advantage is zero down payment required on most purchases. VA loans also don't require monthly mortgage insurance, which saves borrowers hundreds of dollars monthly compared to conventional loans with low down payments.
Borrowers pay a one-time VA funding fee instead of ongoing insurance. This fee can be rolled into the loan amount. VA loans only finance primary residences, not investment properties.
Eligibility creates the first major divide. Anyone with sufficient credit and income can pursue conventional financing. VA loans require military service credentials that most Antioch residents don't have.
Down payment requirements differ dramatically. Conventional buyers need at least 3% down, while VA borrowers can finance 100% of the purchase price. This difference means veterans can buy without years of savings.
Monthly costs vary based on down payment size. A conventional buyer with 5% down pays PMI monthly. A VA borrower pays no ongoing insurance, just a one-time funding fee at closing. Rates vary by borrower profile and market conditions for both loan types.
If you're an eligible veteran or service member, VA loans typically provide better value. The zero down payment and no monthly insurance create significant savings, especially in Antioch where these features help overcome budget constraints.
Conventional loans make sense for non-military buyers or veterans purchasing investment properties. They also work better for buyers with substantial down payments who want to avoid the VA funding fee.
Some veterans choose conventional financing when they've used their VA entitlement elsewhere or when seller concerns about VA appraisals might affect negotiations. Your specific situation determines the best path.
No, VA loans only finance primary residences where you intend to live. Investment properties require conventional financing or other loan types.
Both typically close in similar timeframes. VA loans require a VA appraisal which can add a few days, but processing speeds are generally comparable.
VA loans often accept lower credit scores than conventional financing. Most lenders want 620 minimum for VA, while conventional may require 640 or higher for best terms.
Yes, by putting down at least 20% of the purchase price. Some borrowers use lender-paid PMI options, though these typically mean higher interest rates.
Not always. Rates vary by borrower profile and market conditions. VA rates are often competitive, but well-qualified conventional borrowers sometimes secure similar or better rates.