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in Orange Cove, CA
Both FHA and VA loans help Orange Cove buyers with limited cash reserves get into homes. The main difference: VA requires military service, FHA requires mortgage insurance.
Most Orange Cove borrowers choose based on eligibility first, cost second. If you qualify for VA, you'll typically save thousands over the loan term compared to FHA.
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 annual premiums for the loan's life.
We see FHA work well for Orange Cove first-time buyers who don't qualify for VA. The flexible credit standards help borrowers with past financial issues get approved.
Your debt-to-income ratio can go up to 50% with strong compensating factors. That matters in Fresno County where incomes don't always match housing costs.
VA loans require zero down payment and charge no monthly mortgage insurance. You'll pay a one-time funding fee ranging from 1.4% to 3.6% based on service type and down payment.
Credit score minimums vary by lender, but we regularly approve VA loans at 580-600 for Orange Cove veterans. The government guarantee lets lenders take more risk on credit.
VA loans cap what you pay in closing costs and prohibit prepayment penalties. These protections save borrowers real money compared to other loan types.
The funding fee gap matters less than you'd think. VA's 2.3% fee (for first use, zero down) costs less over time than FHA's lifetime mortgage insurance.
VA allows 100% financing with no PMI. FHA requires 3.5% down plus ongoing insurance premiums that add $150-300 monthly on typical Orange Cove home prices.
Seller concessions reach 6% on VA versus 6% on FHA, so that's equal. But VA's stricter appraisal standards sometimes kill deals on fixer properties common in rural Fresno County.
If you're eligible for VA, use it. The savings from zero down and no mortgage insurance outweigh FHA benefits in almost every Orange Cove scenario.
Choose FHA when you don't qualify for VA or you're buying a property that won't pass VA's minimum property requirements. We see this with older homes needing foundation or roof work.
Both programs have loan limits that cover most Orange Cove properties comfortably. Your choice comes down to eligibility first, property condition second.
Yes, both programs work throughout Fresno County. You must qualify for VA through military service, while FHA is available to any qualified borrower.
VA typically costs $200-400 less monthly than FHA on the same loan amount. The difference comes from no mortgage insurance on VA loans.
FHA requires upfront and monthly mortgage insurance for the loan's life. VA charges a one-time funding fee but no monthly premiums.
FHA has published minimums of 580 credit score. VA minimums vary by lender but often match FHA in practice for Orange Cove borrowers.
FHA allows more property condition issues than VA. VA appraisals often require repairs before closing on older Orange Cove homes.