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in Kingsburg, CA
Both FHA and VA loans offer government backing with easier approval than conventional mortgages. The right choice depends on whether you qualify for VA benefits and how much cash you have for closing.
FHA loans work for any buyer with qualifying credit and income. VA loans require military service but come with unbeatable terms—no down payment and no mortgage insurance.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus monthly premiums for the loan's life in most cases.
These loans cap at specific county limits and require the home to meet FHA property standards. Credit flexibility makes them popular with first-time buyers and those rebuilding credit.
VA loans require zero down payment for eligible veterans and service members. You pay a one-time funding fee (waived for disabled veterans) but no ongoing mortgage insurance—a massive monthly savings.
Sellers can pay all your closing costs if they agree. Loan limits exist but qualified buyers can exceed them with a down payment on the excess amount.
The biggest gap is mortgage insurance. FHA charges 0.55% to 0.85% annually for the loan's life. VA has none—just a one-time funding fee of 2.15% to 3.3% for first-time use.
On a $350,000 Kingsburg home, FHA costs roughly $200-250 monthly in insurance. VA eliminates that entirely. Over 30 years, that's $72,000 to $90,000 in savings if you qualify for VA benefits.
If you served in the military and have a Certificate of Eligibility, VA wins on every financial metric. Lower monthly costs and zero down payment make it the strongest government loan program.
Choose FHA if you're not military-eligible or buying a multi-unit property for owner-occupancy (VA maxes at four units but with tighter rules). FHA also works when the home doesn't meet VA property requirements.
Both require primary residence occupancy. The home must meet government property standards, though VA has stricter requirements for safety and condition.
VA loans typically price 0.25% to 0.5% lower than FHA because they carry less risk for lenders. Rates vary by borrower profile and market conditions.
Yes, both have closing costs. VA allows sellers to pay all of them. FHA limits seller concessions to 6% of the purchase price.
Only if you put down 10% or more—then it drops after 11 years. Most FHA buyers pay 3.5% down and carry insurance for the loan's life.
VA requires homes to be move-in ready. If the property needs work, FHA's 203(k) renovation loan might work better despite higher insurance costs.