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in Firebaugh, CA
Firebaugh buyers face a clear fork: conventional loans work for anyone with solid credit and down payment savings. VA loans strip away those barriers if you've served in the military.
The choice isn't about which loan is better overall. It's about which one your service history and financial profile unlock.
Conventional loans require 620+ credit and at least 3% down payment. You pay PMI until you hit 20% equity, which adds $50-200 to monthly payments on most Firebaugh homes.
Lenders cap your debt-to-income at 45-50% typically. These loans work for primary homes, second properties, and investment rentals across Fresno County.
Rates vary by borrower profile and market conditions. Stronger credit scores and bigger down payments unlock lower rates and better terms.
VA loans require zero down payment if you have valid military service. You pay a one-time funding fee instead of monthly PMI, which saves money long-term.
Credit requirements flex lower than conventional, often accepting 580-600 scores. The government guarantee lets lenders stretch on approval criteria most conventional underwriters won't touch.
These loans only work for primary residences. You can't use VA financing for rental properties or second homes in Firebaugh.
The down payment gap matters most. Conventional asks for 3-20% upfront while VA asks for nothing except the funding fee, which you can roll into the loan amount.
PMI structures flip the script on monthly costs. Conventional buyers pay PMI until 20% equity; VA buyers never pay it but front a 2.3% funding fee at closing.
Property types split cleanly. Conventional covers everything from owner-occupied to investment rentals; VA only funds primary residences for qualified military borrowers.
Use VA if you qualify through military service. Saving 3-20% down payment takes years for most Firebaugh buyers, and VA removes that wait entirely.
Pick conventional if you're buying investment property or need a second home. VA won't touch those, and waiting to build 20% equity for a rental often kills deal momentum.
Consider conventional even with VA eligibility if you have 20% down saved. You skip both PMI and the VA funding fee, though VA rates sometimes offset that advantage.
No. VA loans only finance primary residences. Use conventional financing for investment properties in Fresno County.
VA loans often price 0.25-0.50% lower than conventional. Rates vary by borrower profile and market conditions.
No. Most lenders approve conventional loans at 620 credit scores. Higher scores unlock better rates and terms.
First-time VA users pay 2.3% with zero down. You can finance this fee into your loan amount.
Yes. Put down 20% or more and you skip PMI entirely. Smaller down payments require PMI until you reach 20% equity.