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in San Joaquin, CA
Both FHA and VA loans help San Joaquin buyers with limited cash reserves. The main difference: VA loans require military service, FHA loans don't.
Most San Joaquin borrowers choose based on eligibility first, then compare costs. VA loans cost less long-term if you qualify.
FHA loans let you buy with 3.5% down if your credit score hits 580. Drop below that and you need 10% down.
You'll pay an upfront mortgage insurance premium of 1.75% plus monthly premiums for the loan's life. These costs add up but make homeownership accessible sooner.
Most San Joaquin first-time buyers use FHA because it accepts credit scores down to 500 with compensating factors. Debt-to-income ratios can stretch to 50% with strong payment history.
VA loans require zero down payment and charge no monthly mortgage insurance. The upfront funding fee ranges from 1.4% to 3.6% depending on down payment and prior use.
You need a Certificate of Eligibility showing qualifying military service. Most veterans, active duty members, National Guard, and Reserves with 90+ days active service qualify.
Lenders typically want 620+ credit for VA loans, though the VA itself sets no minimum. Rates run lower than FHA because the government guarantee is stronger.
The biggest split: VA loans have no monthly mortgage insurance, FHA charges it forever. On a $350,000 loan, that's roughly $240/month you keep with VA.
FHA accepts anyone who qualifies financially. VA requires military service but rewards that service with better loan terms and lower lifetime costs.
Both programs allow seller concessions up to 4-6% of purchase price. Both work with manufactured homes if they meet program standards.
If you qualify for VA benefits, use them. The monthly savings and zero down requirement beat FHA in almost every scenario.
Choose FHA when you don't have military service or your VA entitlement is tied up in another property. It's the next best option for limited down payments.
Some San Joaquin buyers use FHA while on active duty to preserve VA benefits for a future purchase. This works if you plan to buy again in a higher-priced market later.
Yes. Previous FHA use doesn't affect VA eligibility. You can switch from FHA to VA on your next purchase if you qualify for benefits.
VA loans typically run $200-300 less monthly because there's no mortgage insurance. The upfront funding fee is your only extra cost.
Yes, but VA appraisals are stricter on property condition. FHA allows more needed repairs as long as the home is safe and habitable.
Yes. Putting 5% down drops the VA funding fee from 2.3% to 1.65%. Putting 10%+ down cuts it to 1.4%.
FHA and VA close in similar timeframes, usually 30-45 days. VA appraisals sometimes take longer to schedule in rural areas.