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in Mendota, CA
Mendota buyers choosing between conventional and VA loans face a clear decision tree. Veterans with eligibility get zero down and no PMI — everyone else needs conventional.
Both programs work well in Fresno County's agricultural market. Your military status, down payment capacity, and credit profile determine which path makes sense.
Conventional loans are the standard mortgage for non-military buyers in Mendota. You need at least 3% down for a primary residence and 620+ credit to qualify with most lenders.
Put down less than 20% and you pay PMI until you hit 20% equity. Rates vary by borrower profile and market conditions, but strong credit typically earns better pricing than government programs.
These loans work for any property type in Fresno County — single-family homes, condos, multi-units. Loan limits go up to $806,500 for conforming loans, higher for jumbo programs.
VA loans eliminate the down payment requirement entirely for eligible veterans and active-duty service members. No PMI ever, regardless of your equity position.
You pay a one-time funding fee instead — typically 2.3% for first-time use with zero down. Disabled veterans get this fee waived completely, making it the cheapest mortgage option available.
Credit standards are more flexible than conventional. Many lenders approve 580+ scores, though better credit still gets better rates. The VA guarantees part of the loan, reducing lender risk.
The down payment gap is the biggest difference. VA buyers in Mendota can purchase with zero cash at closing while conventional buyers need 3-20% saved up.
PMI versus funding fee changes the math. Conventional borrowers pay monthly PMI until 20% equity; VA borrowers pay a one-time upfront fee but never monthly insurance.
Credit flexibility matters for borderline buyers. Conventional lenders rarely budge below 620, while VA lenders regularly approve 580-619 scores with compensating factors.
Property standards differ too. VA requires specific safety and condition standards that can complicate rural Fresno County purchases. Conventional loans have fewer property restrictions.
If you have VA eligibility, use it. Zero down and no PMI beat conventional financing in almost every scenario for owner-occupied purchases in Mendota.
Conventional makes sense when you're buying investment property, need faster closing timelines, or the home won't pass VA inspection requirements. Also your only option if you lack military service.
Some Mendota veterans still choose conventional when they have 20%+ down and want to preserve VA entitlement for a future purchase. That's a strategic decision worth discussing with your broker.
No. VA loans require owner occupancy — you must live in the home as your primary residence. Investment properties need conventional or other financing.
Different structure. VA charges 2.3% once upfront; conventional charges 0.3-1.5% annually until 20% equity. VA saves money long-term for most buyers.
Usually yes. VA appraisals often take 2-3 weeks longer due to property condition requirements. Conventional typically closes 5-7 days faster.
Yes if you have remaining VA entitlement. Many veterans use VA for primary residence and conventional for second home or investment property.
VA rates run 0.25-0.5% lower on average. Rates vary by borrower profile and market conditions, but VA pricing typically beats conventional for equivalent credit.