Loading
in Clearlake, CA
Both FHA and VA loans help Lake County buyers with limited cash or credit challenges get approved. The right choice depends on whether you qualify for VA benefits and how much you have saved for a down payment.
FHA loans work for anyone meeting credit and income requirements. VA loans require military service but offer unmatched terms including zero down payment and no mortgage insurance.
FHA loans let you buy with just 3.5% down if your credit score hits 580. Clearlake buyers with 10% down can qualify with scores as low as 500.
You'll pay upfront mortgage insurance (1.75% of the loan) plus monthly premiums. These costs stick around for the life of most FHA loans, which adds to your monthly payment.
FHA caps how much you can borrow at $498,257 in Lake County for 2024. This covers most homes in Clearlake but limits you on higher-end properties.
VA loans eliminate the down payment entirely if you're an eligible veteran or active-duty service member. You finance 100% of the purchase price with no mortgage insurance ever.
The VA charges a funding fee ranging from 1.4% to 3.6% depending on your service type and whether you've used the benefit before. Disabled veterans often get this waived completely.
Lake County's VA loan limit is $766,550 for 2024. You can borrow more without a down payment if your entitlement covers it, giving you serious buying power in Clearlake.
The down payment gap matters most. FHA requires at least $7,000 down on a $200,000 Clearlake home, while VA requires nothing if you qualify.
Monthly costs diverge sharply. FHA borrowers pay upfront and monthly mortgage insurance that typically adds $150-200 per month. VA borrowers skip this entirely, which saves around $2,000 annually.
Credit flexibility is similar—both programs work with scores in the 580-620 range. VA lenders sometimes approve slightly lower scores because the government guarantee reduces their risk.
Use VA if you have the eligibility. Zero down and no mortgage insurance beat FHA's terms decisively. The only trade-off is the funding fee, which you can roll into the loan.
Choose FHA when you don't qualify for VA benefits. It's the next-best option for buyers with limited down payment funds or credit in the 580-620 range.
Some Clearlake buyers with VA eligibility still pick FHA if they're purchasing a fixer-upper that doesn't meet VA's property standards. FHA accepts homes in rougher condition.
The property must meet VA minimum standards for safety and habitability. Homes needing major repairs often don't qualify, while FHA accepts them.
Typically 0.55%-0.85% of your loan amount annually, paid monthly. On a $200,000 loan, expect $90-140 added to your payment.
Yes, eligible borrowers can finance 100% up to $766,550 without a down payment. Above that amount, you may need cash for the difference.
Speed is similar—both take 30-45 days typically. VA loans sometimes add a few days for Certificate of Eligibility processing.
You can refinance into a VA loan later if you qualify. Many veterans do this to eliminate FHA mortgage insurance once they discover their benefits.