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in Alhambra, CA
Both FHA and VA loans offer low-money-down financing in Alhambra, but they serve different borrowers. FHA loans work for anyone who qualifies, while VA loans are exclusive to military members and veterans.
The choice between them depends on your military service status and how much you want to spend upfront. VA loans eliminate most fees that FHA requires, saving veterans thousands at closing.
FHA loans let you buy in Alhambra with just 3.5% down if your credit score hits 580. Below 580, you'll need 10% down.
You'll pay two types of mortgage insurance: an upfront fee of 1.75% rolled into your loan, plus monthly premiums for the loan's life. Rates run competitive with conventional loans, and lenders accept credit issues that happened years ago.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee between 1.4% and 3.6% based on service type and whether you've used the benefit before.
Rates typically beat FHA by 0.25% to 0.5% because the VA guarantee reduces lender risk. Credit score minimums vary by lender, but most start at 620 in the Los Angeles area.
The funding fee versus mortgage insurance decision costs real money. FHA's monthly insurance adds $200-$300 to your payment on a median Alhambra home and never drops off unless you refinance with 20% equity.
VA loans charge the funding fee once, then you're done. A veteran buying with zero down pays 2.3% upfront but saves $250+ monthly by avoiding mortgage insurance. Over ten years, VA borrowers save $30,000 in premium payments compared to FHA.
If you qualify for VA benefits, use them. The zero down payment and no mortgage insurance beat FHA's terms every time, even after paying the funding fee.
FHA makes sense when you're not military-connected or when you've already used your VA entitlement on another property. It's the only government loan most civilians can access with under 5% down.
Yes, if you have remaining entitlement or pay off your existing VA loan. Many veterans use VA loans multiple times throughout their lives.
Both close in 30-45 days typically. VA appraisals sometimes take longer because the VA requires additional property inspections that FHA doesn't mandate.
VA inspections check for safety issues like peeling paint and handrails. FHA accepts more properties as-is, making it better for fixer-uppers in older Alhambra neighborhoods.
Veterans with service-connected disabilities rated 10% or higher skip the funding fee entirely. This saves 1.4%-3.6% upfront on any purchase price.
Only if you refinance into a new loan once you reach 20% equity. FHA loans originated after 2013 carry mortgage insurance for the full loan term.