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in Reedley, CA
Reedley buyers face a straightforward choice between conventional and VA financing. Veterans and active military get unmatched benefits with VA loans, while conventional works for everyone else with good credit.
The right loan depends on your military status and down payment situation. VA loans dominate when you qualify — zero down and no mortgage insurance cuts monthly costs significantly.
Conventional loans come from private lenders and follow Fannie Mae or Freddie Mac guidelines. You need 620+ credit and typically 3-20% down depending on your debt ratios and savings.
PMI applies when you put down less than 20%, adding $50-$300 monthly on Reedley's typical home prices. Interest rates run competitive for strong borrowers with 740+ scores and solid income documentation.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee (0.5-3.6% of loan amount) that gets rolled into your mortgage balance.
Eligible veterans, active duty, and surviving spouses qualify through the VA guarantee program. Sellers often pay closing costs in Fresno County, reducing your cash to close even further.
Down payment splits these loans dramatically. VA requires nothing upfront while conventional demands 3-20% — that's $12,000-$80,000 on a $400,000 Reedley purchase.
Monthly costs favor VA too. No PMI saves $150-$250 per month compared to conventional with 5% down. VA rates often beat conventional by 0.25-0.5% because the government guarantee reduces lender risk.
Use VA if you qualify — period. The zero-down structure and no PMI make it the strongest mortgage product available for Reedley veterans and active military.
Conventional makes sense when you don't have military eligibility or you're buying investment property (VA only covers primary residences). Strong borrowers with 20% down get excellent conventional rates without PMI.
Yes, eligible veterans and active military can buy in Reedley with no down payment. You pay a one-time funding fee instead of ongoing mortgage insurance.
Conventional requires 620 minimum, though 740+ gets best rates. VA lenders typically want 580-620, with more flexibility on past credit issues for military borrowers.
Both close in 25-35 days typically. VA appraisals add 3-5 days because they include property condition requirements, but experienced brokers keep timelines tight.
Yes, put down 20% or more to skip PMI. Below that threshold, you pay $50-$300 monthly until you hit 20% equity through payments or appreciation.
First-time VA users pay 2.15% with zero down, reduced to 1.25% with 5%+ down. Disabled veterans and some surviving spouses get the fee waived completely.