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in Clearlake, CA
Clearlake buyers face a straightforward choice: conventional financing with its 3% down option, or VA loans that eliminate down payments entirely for eligible veterans. The right pick depends on your military service status and how much cash you can bring to closing.
Both loans work well in Lake County's market, but they take different paths to approval. Veterans gain a clear advantage with VA financing, while conventional loans offer more property flexibility and faster closes in competitive situations.
Conventional loans require 3% down minimum and credit scores around 620 for approval. You'll pay private mortgage insurance until you reach 20% equity, which adds $50-200 monthly on typical Clearlake purchases.
These loans close in 25-35 days and work for any property type from lakefront homes to condos. Sellers prefer them because there's no VA appraisal process, and conventional underwriting moves faster than government loans.
VA loans eliminate down payments completely for eligible veterans and active-duty service members. You'll pay a one-time funding fee of 2.3% for first-time use, but no monthly mortgage insurance ever.
These loans require proof of military service and credit scores around 580-620 depending on the lender. VA appraisals add 5-7 days to closing and require specific property standards, which sometimes causes issues with older Clearlake homes.
The biggest split is down payment: VA requires nothing while conventional needs at least 3% cash. On a $300,000 Clearlake home, that's $0 versus $9,000 upfront.
Monthly costs favor VA loans long-term since there's no mortgage insurance. A veteran buying with zero down still pays less monthly than a conventional borrower who put down 10%. The VA funding fee gets rolled into the loan, so you're not writing a check at closing.
Use your VA benefit if you have it. The zero down payment and no PMI combination beats conventional financing in almost every scenario for eligible veterans, even if you have cash available.
Go conventional if you're not military-eligible or buying a property that won't pass VA appraisal standards. Some older Clearlake homes need repairs before VA approves them, and conventional loans don't flag those same issues.
VA appraisers flag roof damage, foundation issues, and safety hazards that must be repaired before closing. Many Clearlake fixers won't qualify until sellers complete those repairs.
Expect $50-200 monthly depending on your down payment and credit score. PMI drops off automatically once you reach 20% equity through payments or appreciation.
Yes, but some prefer conventional financing because VA appraisals add time and sometimes kill deals. Strong offers and quick responses help VA buyers compete.
Only if the complex is VA-approved, which many Lake County condos are not. Conventional loans work for any condo, making them more flexible for that property type.
VA loans approve at 580-620 depending on the lender. Conventional loans need 620 minimum, with better rates starting at 680.