Loading
in Avenal, CA
Avenal buyers face a straightforward choice between conventional financing and VA benefits. Most borrowers here default to conventional loans without checking if they qualify for VA's zero-down advantage.
Veterans and active military in Kings County leave thousands on the table by not using their VA benefit. The difference between 3-5% down conventional and 0% down VA changes what you can afford in Avenal's market.
Conventional loans require 3% down minimum, 620+ credit, and mortgage insurance below 20% equity. Most Avenal buyers use these because they don't qualify for government programs.
Rates run competitive for borrowers with 700+ scores and stable W-2 income. You'll pay PMI until you hit 20% equity, adding $75-250 monthly depending on your down payment and credit.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee (1.4-3.6% of loan amount) that rolls into your mortgage.
Qualifying takes proof of service plus standard credit and income checks. Most lenders want 580+ credit, though some go lower for veterans with strong profiles.
The down payment gap is massive. A $350,000 Avenal purchase needs $10,500-17,500 down conventional versus $0 for VA, though you'll finance a $4,900-12,600 funding fee instead.
Monthly costs favor VA heavily due to no PMI. That same $350K loan costs roughly $150-200 less per month with VA financing, even accounting for the funded fee increasing your balance.
Use VA if you're eligible, period. The zero-down and no-PMI structure beats conventional in almost every scenario for Avenal properties, even with the funding fee baked in.
Conventional makes sense only if you're not military-connected or buying a luxury property above VA limits. Some sellers prefer conventional over VA due to appraisal requirements, but that's rare in Kings County's straightforward market.
Most lenders want 580+ for VA loans, though some approve 540+ scores. Your rate increases with lower credit, but you still avoid PMI and down payment requirements.
No. Even with the 1.4-3.6% funding fee, VA's lack of PMI and down payment saves more over time. The monthly savings alone recover the fee within 2-3 years.
If you're not military-eligible, conventional is your only option. Some buyers also use conventional for jumbo purchases above VA loan limits or properties needing major repairs.
Rarely. VA appraisals require better property condition, but most Kings County homes meet standards. Sellers care more about your approval strength than loan type.
Yes if you're 10%+ disabled or receiving VA compensation. Purple Heart recipients and surviving spouses also get exemptions. Everyone else pays the fee.