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in San Joaquin, CA
San Joaquin borrowers face a clear choice between conventional financing and VA-backed mortgages if they qualify for military benefits. Both work well in this Central Valley market, but the right option depends on your service history and down payment capacity.
Conventional loans demand stronger credit and cash reserves. VA loans waive the down payment entirely for eligible veterans and active-duty service members.
Conventional loans require at least 3% down and credit scores typically above 620. You'll pay private mortgage insurance if you put down less than 20%, which adds $100-300 monthly on most San Joaquin home purchases.
Lenders price conventional loans based on credit score, down payment size, and debt ratios. Stronger profiles get better rates. These loans work for anyone who doesn't qualify for VA benefits and can meet the down payment requirement.
VA loans eliminate the down payment and never require mortgage insurance. Veterans and active-duty service members can finance 100% of the purchase price with competitive rates.
You'll pay a one-time funding fee between 1.4% and 3.6% of the loan amount, which can be rolled into the mortgage. Most lenders accept 580-600 credit scores for VA financing, lower than conventional standards.
The down payment gap is the biggest divider. VA borrowers finance the full price while conventional buyers need 3-20% upfront cash. On a $350,000 San Joaquin home, that's $0 down versus $10,500-70,000.
Monthly costs also split differently. Conventional loans under 20% down carry PMI that VA loans avoid entirely. But VA charges an upfront funding fee that conventional loans don't have. The funding fee typically runs 2.3% for first-time VA users with zero down.
If you qualify for VA benefits, use them. The zero-down structure and lack of mortgage insurance beat conventional financing in almost every scenario. You'll save thousands in upfront costs and monthly payments.
Conventional makes sense when you're not eligible for VA or when you're buying investment property that VA won't cover. It's also the better choice if you have 20%+ down and want to avoid the VA funding fee entirely.
No. VA loans require active-duty service, veteran status, or qualification as a surviving spouse. Civilian borrowers need conventional or other loan types.
Both close in 25-35 days typically. VA appraisals sometimes take longer, but the difference is minimal with experienced lenders.
Usually, yes. VA rates run 0.25-0.50% lower on average because the government guarantee reduces lender risk.
Not on standard conventional loans. You'll pay PMI until you reach 20% equity through payments or appreciation.
First-time VA users pay 2.3% with zero down, 1.65% with 5%+ down. Subsequent use increases to 3.6% for zero-down purchases.