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Reedley's housing stock fits VA loan limits comfortably. Most single-family homes fall well under the $832,750 county conforming limit.
Veterans buying here use the zero-down benefit without hitting jumbo territory. That keeps funding fees lower and approval simpler than in coastal markets.
Fresno County sees steady VA loan activity from Castle Air Museum area veterans and Travis AFB retirees. Reedley attracts buyers seeking space and affordability.
The rural character works for VA buyers who want land. Quarter-acre to multi-acre properties qualify if they meet standard residential appraisal guidelines.
You need a Certificate of Eligibility from the VA. Active duty requires 90 consecutive days during wartime or 181 days during peacetime.
Veterans need six years of service for most situations. National Guard and Reserve members qualify after six years unless called to active duty earlier.
No minimum credit score from VA, but most lenders want 620 or higher. We access lenders who approve at 580 with strong compensating factors.
Income must cover the mortgage payment plus debts. VA allows up to 41% debt-to-income, sometimes higher with residual income cushion.
Not every lender handles VA loans efficiently. Some add overlays or drag out the appraisal process with inexperienced staff.
We work with VA specialists who turn files in 21 days. They know how to handle rural appraisals and septic system requirements common in Reedley.
Funding fees vary: 2.15% for first-time zero-down users, 3.3% for subsequent use. Disabled veterans pay nothing, which saves thousands.
Sellers can pay up to 4% toward your closing costs. That covers everything except the funding fee in most Reedley transactions.
Reedley sellers sometimes balk at VA loans, thinking inspections kill deals. We educate listing agents that VA appraisals are reasonable.
The chipped paint and safety rail requirements are minor. Most Reedley homes pass without issue since the housing stock is well-maintained.
Watch for well and septic properties. VA requires flow tests and inspections that conventional loans skip. Budget an extra week for those.
First-time VA buyers often underestimate their buying power. Zero down on a $400,000 home means you keep cash for furniture and repairs instead of draining savings.
FHA requires 3.5% down plus monthly mortgage insurance forever unless you refinance. VA has no monthly MI and no down payment required.
Conventional loans need 5% down minimum and PMI until you hit 20% equity. VA skips both from day one.
USDA loans offer zero down in eligible Reedley areas, but income limits cap qualification. VA has no income ceiling, just debt ratio requirements.
Jumbo loans demand 10-20% down and perfect credit. VA handles higher loan amounts at the same zero-down terms if you have full entitlement.
Reedley sits in unincorporated Fresno County pockets where zoning allows agriculture. VA approves hobby farms if the home is residential and acreage under 10.
Older homes near downtown need inspection attention for foundation and electrical. VA appraisers flag those, but sellers usually handle repairs during escrow.
Water rights and irrigation easements show up on rural parcels. VA requires clear title, so expect your lender to verify those don't cloud ownership.
Commute distance matters for military buyers stationed at Lemoore NAS. Reedley sits 45 minutes out, which some accept for affordability and space.
Only if it's move-in ready. VA requires homes to meet minimum property standards at closing, so major repairs must finish before you buy or you need a renovation loan.
Most borrowers roll it into the loan amount. You can pay cash at closing, but financing it preserves liquidity without affecting your interest rate.
You can pay the difference in cash, renegotiate the price, or walk away with your earnest money if you have an appraisal contingency. VA won't lend above appraised value.
Yes, if it's on a permanent foundation and titled as real property. The land must be part of the purchase, not a separate lease arrangement.
Expect 2-3% of the loan amount. Lender fees, title, escrow, and prepaid property taxes make up most of it, but sellers often cover a large portion.
Yes, and flood insurance if you're in a FEMA zone. Some rural Reedley areas have higher fire risk, which can increase premiums but doesn't block approval.
VA Loans in Reedley