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in Susanville, CA
Susanville buyers with military service have a choice most civilians don't: use VA benefits or compete with conventional financing. The right answer depends on your credit, cash reserves, and how long you plan to stay.
VA loans eliminate down payments and mortgage insurance, but conventional loans sometimes close faster and work better for investment properties. In a small market like Lassen County, these details change which loan wins the approval race.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You need at least 3% down and 620 credit for most programs, though stronger credit gets better rates.
Put down less than 20% and you'll pay private mortgage insurance until you hit 20% equity. These loans work for primary homes, second homes, and investment properties with standard occupancy rules.
VA loans guarantee mortgages for veterans and active-duty service members through the Department of Veterans Affairs. You pay a funding fee instead of a down payment, and that fee drops to zero for disabled veterans.
No monthly mortgage insurance exists on VA loans regardless of loan-to-value ratio. You need a Certificate of Eligibility and acceptable credit, though VA doesn't set a minimum score like conventional programs do.
The down payment gap creates the biggest cost difference. Conventional buyers need $12,000 down on a $400,000 home at 3% minimum, while VA buyers pay a 2.15% funding fee that rolls into the loan balance.
Rates vary by borrower profile and market conditions, but VA loans typically price 0.25-0.50% lower than conventional. The VA advantage grows when your credit sits below 740, where conventional pricing hits you harder.
Use VA if you qualify and plan to live in the home. The zero-down structure and absent mortgage insurance save most veterans $200-400 monthly compared to conventional loans with minimum down payments.
Choose conventional when buying investment property, purchasing a second home while your VA entitlement is tied up, or when you have 20% down and want maximum seller appeal. Some Susanville sellers prefer conventional offers because they close predictably without appraisal repair requirements.
Yes. Your entitlement restores after you sell and pay off the previous VA loan. You can also buy again with remaining entitlement while keeping your first VA loan.
Not necessarily. VA appraisals add 5-7 days in rural markets, but experienced lenders close both loan types in similar timeframes. Choose a lender who handles VA volume regularly.
VA appraisers flag safety and habitability issues that conventional appraisers might ignore. Sellers sometimes resist VA offers for this reason, though most homes pass without problems.
Veterans with service-connected disabilities pay zero funding fee. Active-duty members making a down payment of 10% or more also pay reduced fees.
Conventional loans require 620 minimum. VA has no official floor, though most lenders want 580-600 credit and will approve strong profiles down to 540.