Loading
in Kerman, CA
Kerman sits 15 miles west of Fresno, attracting both civilian buyers and veterans drawn to agricultural land and affordable housing. The choice between conventional and VA financing hinges on your military status and down payment ability.
Most Kerman buyers use conventional loans because they're available to everyone. Veterans get VA benefits that slash upfront costs — but only if they qualify through service requirements.
Conventional loans come from private lenders with terms set by Fannie Mae and Freddie Mac. You need 620+ credit for most programs, though 740+ unlocks better rates.
First-time buyers can put down 3% with higher mortgage insurance. Repeat buyers typically need 5-15% down depending on property type and credit profile.
Mortgage insurance drops off at 20% equity on standard loans. Investment properties and second homes require 15-25% down with stricter qualification standards.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee of 2.15-3.3% unless disabled, which can be rolled into the loan amount.
Eligible veterans need a Certificate of Eligibility showing 90+ days active duty during wartime or 181+ days during peacetime. National Guard and Reserves qualify after six years of service.
Sellers can pay all your closing costs under VA rules. Interest rates run 0.25-0.50% lower than conventional because the VA guarantee reduces lender risk.
Down payment separates these loans most dramatically. Conventional requires 3-20% cash while VA needs nothing upfront, saving Kerman buyers $9,000-$60,000 on a typical home.
VA charges a 2.15% funding fee on first use with zero down — about $6,450 on a $300,000 purchase. Conventional buyers pay 3% down plus ongoing mortgage insurance until they hit 20% equity.
Credit standards differ slightly. Conventional lenders want 620+ scores and scrutinize debt ratios closely. VA guidelines are more flexible on credit, focusing on reliable payment history over the past 12 months.
Use VA if you're eligible — the zero down and no monthly MI save substantial cash over loan life. The 2.15% funding fee costs less than years of conventional mortgage insurance on low-down loans.
Go conventional if you're not a veteran or buying investment property. VA only works for primary residences, so Kerman buyers purchasing ag land as investment need conventional financing.
Some veterans still choose conventional when putting 20%+ down eliminates MI anyway. This preserves VA entitlement for a future zero-down purchase on a different property.
Only if it's your primary residence with some agricultural use. Pure investment land requires conventional financing since VA restricts loans to homes you'll occupy.
You still pay earnest deposit, appraisal, and inspections upfront. Sellers can cover your remaining closing costs under VA rules, potentially leaving you with minimal cash needed.
Conventional typically closes 2-3 days faster because VA requires additional property inspections. Most Kerman deals close in 25-35 days regardless of loan type.
Yes, but it restarts underwriting and delays closing 10-14 days. Better to choose correctly upfront based on your eligibility and down payment situation.
Some do because VA appraisals include stricter property standards. Strong offers with solid pre-approval overcome this bias in most cases.