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in Fresno, CA
Fresno buyers often choose between conventional and VA loans based on military eligibility and upfront cash. Both work across Fresno's housing stock, from Tower District bungalows to newer builds in northeast Fresno.
VA loans eliminate down payments and mortgage insurance for qualified veterans. Conventional loans serve everyone but require skin in the game and stronger credit profiles.
Conventional loans require 3-20% down and 620+ credit. You pay private mortgage insurance under 20% down, adding $100-300 monthly on typical Fresno purchases.
These loans cap at conforming limits and work with any property type. Rates drop as your down payment and credit score increase, rewarding strong financials.
VA loans require zero down and no monthly mortgage insurance. You pay a one-time funding fee (1.4-3.6% depending on service type), which rolls into the loan.
Credit requirements flex below conventional standards. Sellers can cover all closing costs, and you can finance up to $766,550 in Fresno County with no PMI drag.
Down payment separates these programs most. VA lets veterans buy with $0 out of pocket while conventional demands 3-20% plus reserves.
Monthly costs differ sharply under 20% equity. A $400K Fresno home costs $200 less monthly on VA versus conventional at 5% down, purely from avoiding PMI.
Use VA if you qualify — period. Saving 3-5% down payment on a Fresno home means keeping $12K-20K for renovations or reserves.
Conventional makes sense for non-veterans or when buying investment properties VA won't cover. It also works better on fixer-uppers that fail VA property standards.
VA covers primary residences meeting minimum property requirements. Investment properties and some fixer-uppers won't qualify under VA standards.
Only below 20% down. Once you hit 20% equity, conventional drops PMI and monthly costs match VA closely.
Conventional typically requires 620 minimum. VA lenders often approve at 580-600, though rates improve above 620.
Veterans with service-connected disabilities get the funding fee waived completely. Otherwise, it applies to all VA loans.
Both close in 25-35 days typically. Conventional can move slightly faster since VA appraisals include stricter property inspections.