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in Concord, CA
Concord buyers with military service face a decision most neighbors don't get to make. VA loans offer zero down and no PMI, while conventional loans give you more property options and faster closings.
Both loan types work well in Contra Costa County's competitive market. Your choice depends on how much cash you have saved and what type of property you're buying.
Conventional loans are the workhorse of Concord real estate. You need at least 3% down and a 620 credit score for most programs, though stronger borrowers get better rates.
Put down 20% and you skip PMI entirely. That matters in Concord where median prices run higher than surrounding areas. Conventional loans also work for condos, investment properties, and second homes without the restrictions VA loans carry.
VA loans give eligible service members the strongest benefit in homebuying: zero down payment required. You also skip monthly mortgage insurance, which saves $150-300 monthly on a typical Concord purchase.
The VA funding fee runs 2.15% for first-time users with zero down, but you can roll it into the loan. Disabled veterans often get this fee waived entirely. Rates tend to run slightly lower than conventional because the VA guarantee reduces lender risk.
Down payment splits these loans cleanest. Conventional needs 3-20% upfront while VA needs nothing. On a $700,000 Concord home, that's $21,000 minimum versus zero.
Property restrictions matter too. VA loans require homes to meet strict condition standards and won't finance investment properties. Conventional loans work for any property type and accept fixer-uppers that VA appraisers would flag.
Use your VA benefit if you have it and you're buying a primary residence in good condition. The zero down and no PMI combination beats conventional every time for that scenario.
Go conventional if you're buying a condo the VA won't approve, need to close in under 21 days, or you're purchasing a second home. Also choose conventional for properties that need work before they'll pass VA appraisal.
Only if the complex is VA-approved, which many aren't. Check the VA's condo approval list before making an offer. Conventional loans work for any condo that meets standard guidelines.
Expect 0.5-1% of your loan amount annually with less than 20% down. On a $600,000 loan, that's $250-500 monthly until you hit 20% equity.
Usually by 5-7 days because VA appraisals take longer. If you're competing against cash or conventional offers, that timeline matters to sellers.
Yes if you receive VA disability compensation. Active-duty members with Purple Hearts also qualify for the waiver. Otherwise, you'll pay 2.15% for first use.
Both typically require 620 minimum, though VA lenders sometimes approve 580-600 scores. Higher scores get better rates on both loan types.
Yes, and it lowers your funding fee to 1.25%. Some buyers do this to strengthen their offer against conventional buyers in Concord's competitive market.