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in Lemoore, CA
Lemoore sits right next to Naval Air Station Lemoore, which means this market sees plenty of both VA and conventional buyers. Most service members assume VA is always the better deal, but that's not true in every scenario.
Conventional loans require down payments and mortgage insurance below 20% down. VA loans skip both but charge a funding fee upfront. The right choice depends on your down payment cash and how long you plan to stay.
Conventional loans work through Fannie Mae and Freddie Mac guidelines. You need 620 minimum credit for most programs, though we prefer seeing 680+ for competitive rates. Down payments start at 3% for first-time buyers and 5% for repeat buyers.
Put down less than 20% and you'll pay private mortgage insurance until you hit 20% equity. PMI typically runs 0.3% to 1.5% of your loan amount annually. Higher credit scores and bigger down payments shrink that cost significantly.
VA loans guarantee your mortgage through the Department of Veterans Affairs. Zero down payment required regardless of purchase price. No monthly mortgage insurance ever, which saves hundreds per month compared to conventional loans with small down payments.
You'll pay a VA funding fee at closing, typically 2.3% for first-time use with zero down. That fee drops to 1.65% if you put 5% down or more. Veterans with service-connected disabilities skip the funding fee entirely.
The biggest split comes down to upfront versus monthly costs. Conventional loans need cash down but may avoid the VA funding fee. VA loans preserve your cash but charge that fee unless you're service-disabled.
Conventional loans give you more property flexibility. VA has strict appraisal requirements that sometimes kill deals on fixer-uppers. If you're buying near NAS Lemoore and the home needs work, conventional might close faster with fewer inspection hurdles.
Pick VA if you're short on cash and buying a move-in ready home near base. The zero down benefit outweighs the funding fee in most cases. If you have disability rating, VA becomes even more attractive since you skip that fee entirely.
Go conventional if you have 10%+ saved and want faster closings or more property options. Some sellers near Lemoore prefer conventional offers because VA appraisals can be pickier. If you're buying investment property, conventional is your only choice since VA requires owner occupancy.
Yes, as long as you intend to occupy the home as your primary residence. Your assignment length doesn't matter for VA eligibility.
Rates are typically similar. VA sometimes edges ahead slightly, but your specific credit profile matters more than loan type for rate quotes.
VA appraisers flag safety issues that must be fixed before closing. Conventional loans allow more flexibility with property condition.
No, you need 20% down to skip PMI entirely. Some lenders offer lender-paid PMI options with slightly higher rates.
Depends on your timeline. PMI costs more over 5+ years, but the VA fee hits upfront and gets rolled into your loan.