Loading
in Kerman, CA
Both FHA and VA loans help Kerman buyers get into homes with less cash upfront than conventional mortgages require. The difference comes down to eligibility and long-term costs.
FHA loans work for anyone who qualifies financially. VA loans only work if you served in the military, but they offer better terms if you're eligible.
FHA loans need just 3.5% down with a 580 credit score. They allow higher debt ratios than conventional loans, which helps buyers with student loans or car payments qualify.
You'll pay mortgage insurance for the loan's life unless you refinance later. Upfront MIP is 1.75% of the loan amount, plus annual premiums between 0.45% and 1.05%.
Kerman buyers use FHA loans when they don't qualify for VA benefits or need more flexible income documentation. Sellers accept them readily since appraisals rarely kill deals.
VA loans require zero down payment if you're an eligible veteran or active-duty service member. Credit standards are flexible, with most lenders approving 620+ scores.
You pay a one-time funding fee instead of ongoing mortgage insurance. That fee ranges from 1.4% to 3.6% based on down payment and whether you've used the benefit before.
No mortgage insurance means lower monthly payments than FHA. Kerman veterans save $150-300 monthly compared to FHA on similar loan amounts.
Down payment separates these immediately: FHA needs 3.5%, VA needs nothing. On a $350,000 Kerman home, that's $12,250 versus zero upfront.
Monthly costs diverge fast. FHA charges permanent mortgage insurance that adds $200-350 monthly. VA charges nothing beyond the loan payment and funding fee.
Eligibility is the deal-breaker. VA beats FHA on every financial metric, but you can't access it without service records and a Certificate of Eligibility from the VA.
If you're eligible for VA benefits, use them. The combination of zero down and no mortgage insurance saves tens of thousands over the loan term compared to FHA.
FHA makes sense for Kerman buyers without military service who need low down payments and flexible credit standards. It's the fallback when VA isn't an option.
Some veterans still choose FHA when buying multi-family properties above VA loan limits or when the funding fee would exceed FHA's upfront costs. These scenarios are rare but worth calculating.
Yes. Active-duty service, National Guard, and Reserves all generate VA eligibility after meeting minimum service requirements, regardless of deployment history.
VA loans typically price 0.25%-0.5% lower than FHA because they carry less risk for lenders. Rates vary by borrower profile and market conditions.
Only if you put down 10% or more, then it drops after 11 years. Most FHA borrowers refinance to conventional loans to remove it earlier.
Neither program allows pure investment properties. Both require you to occupy the home as your primary residence, though multi-family is allowed.
Both close in 30-40 days typically. VA appraisals sometimes take longer due to property condition requirements, but the difference is minimal.