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in Alhambra, CA
Alhambra buyers face a clear choice between conventional financing and VA benefits. Each loan type serves different borrower profiles with distinct trade-offs.
The right option depends on military status, down payment funds, and long-term ownership plans. Most borrowers qualify for only one of these paths.
Conventional loans require 3-20% down and credit scores around 620-640 minimum. You'll pay PMI if putting down less than 20%, adding $100-300 monthly on typical Alhambra purchases.
These loans adapt to various property types and borrower situations. Lenders set their own guidelines within Fannie Mae and Freddie Mac frameworks, creating flexibility we use to match your profile.
Rates vary by borrower profile and market conditions. Conventional loans typically reward strong credit with better pricing than government programs for borrowers above 740 score.
VA loans require zero down payment and no monthly mortgage insurance. This combination creates the lowest monthly payment structure available in residential lending.
Eligibility requires military service, with certificates of eligibility issued by the VA. Surviving spouses of service members may also qualify under specific circumstances.
VA loans charge a one-time funding fee instead of PMI. This fee gets rolled into the loan amount, preserving your cash while eliminating recurring insurance costs.
Down payment creates the biggest gap. Conventional needs 3-20% while VA requires nothing, meaning $24,000-$160,000 difference on a typical Alhambra home purchase.
Monthly costs diverge further with mortgage insurance. Conventional borrowers pay PMI until reaching 20% equity, while VA borrowers never pay monthly insurance regardless of equity.
Property requirements favor VA buyers on condition. VA appraisals flag issues conventional lenders ignore, sometimes killing deals but protecting you from expensive repairs.
Sellers view these differently in competitive markets. Some Alhambra sellers prefer conventional offers over VA due to appraisal concerns and perceived closing certainty.
Use VA if you qualify. The zero-down structure with no PMI beats conventional math in almost every scenario for eligible borrowers.
Conventional makes sense when you're ineligible for VA or buying investment property. Multi-family properties beyond duplexes require conventional financing.
Some veterans still choose conventional when buying competitively. If sellers are getting multiple offers, conventional financing can strengthen your position despite costing more monthly.
Only if the complex appears on VA's approved condo list. Most Alhambra condos aren't pre-approved, requiring individual approval that adds 2-4 weeks.
Conventional typically closes 3-5 days faster. VA appraisals take longer and require more documentation from sellers on property condition.
VA accepts lower scores, often approving borrowers at 580-600. Conventional loans typically need 620 minimum with most lenders.
Yes, with 20% down or through piggyback loans. Otherwise you'll pay PMI until reaching 20% equity through payments or appreciation.
First-time VA buyers pay 2.15% of the loan amount. Subsequent uses cost 3.3%, though disabled veterans often get fee waivers.