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in Hanford, CA
Both FHA and VA loans help Hanford buyers get into homes with less cash upfront than conventional mortgages require. The key difference: VA loans are exclusively for military-connected borrowers, while FHA is open to anyone who qualifies.
Most Hanford buyers choose based on eligibility first. If you qualify for VA benefits, that's usually the better deal—no down payment and no mortgage insurance.
FHA loans let you buy with just 3.5% down if your credit score hits 580. You'll pay mortgage insurance for the life of the loan unless you refinance later.
These loans work well for first-time buyers in Kings County who have steady income but limited savings. Credit standards are more forgiving than conventional mortgages—we've closed FHA loans with scores as low as 580.
The upfront mortgage insurance premium is 1.75% of the loan amount, plus monthly premiums of 0.55% to 1.05% annually. On a $350,000 home, expect about $290 to $500 in monthly insurance costs.
VA loans require zero down payment and charge no monthly mortgage insurance. You'll pay a one-time funding fee (typically 2.3% for first use), which can be rolled into the loan.
Eligibility requires military service, National Guard duty, or being a surviving spouse of a service member. The VA guarantees part of the loan, which lets lenders offer better terms than FHA.
In Hanford, we see VA loans beat FHA on total cost in almost every scenario. Lower rates, no insurance, and zero down make them the stronger option when you qualify.
The biggest split is eligibility: VA is military-only, FHA is open to everyone. If you qualify for both, VA wins on cost—no insurance and zero down beats FHA's structure.
FHA lets you use the loan for any property type. VA has stricter property standards and won't approve homes with certain defects that FHA might allow.
Credit-wise, both programs are flexible. FHA officially goes to 580, though lenders often want 600+. VA has no minimum score, but most lenders set a 620 floor.
If you served and have VA eligibility, use it. The zero down payment and no insurance save tens of thousands over the loan term compared to FHA.
Choose FHA if you're not military-connected or if the property doesn't meet VA standards. It's still one of the easiest ways to buy with minimal cash down in Kings County.
Some Hanford buyers with VA eligibility still use FHA when buying fixer-uppers that won't pass VA inspection. You can refinance to VA later once repairs are done.
Yes. Active duty service, Reserve, and National Guard members can qualify based on service length. Deployment isn't required for VA loan eligibility.
Both programs accept similar credit scores and income levels. FHA has slightly looser property standards, but VA offers better terms if you qualify.
Yes, both require closing costs. VA limits what fees you can be charged. FHA allows sellers to contribute up to 6% toward your costs.
No. FHA insurance is permanent unless you refinance to a different loan type. VA loans never have monthly insurance to begin with.
VA loans typically cost less monthly due to no insurance and lower rates. FHA requires ongoing insurance that adds $200 to $500 to your payment.