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in Arcadia, CA
Arcadia buyers with military service qualify for VA loans—zero down and no PMI. But conventional loans give you more flexibility on property types and seller acceptance.
Most Arcadia veterans I work with assume VA is always the winner. It's not. If you have 20% down and solid credit, conventional often costs less long-term.
Conventional loans require 3-20% down depending on your credit. You pay PMI under 20% down, but it drops off once you hit 20% equity.
Arcadia's competitive market means conventional buyers often win bidding wars. Sellers see them as less complex—no VA appraisal quirks, faster closings.
VA loans let eligible veterans buy with zero down. No PMI ever. You pay a funding fee—usually 2.3% for first-time use—but it rolls into the loan.
The catch: VA appraisals are strict. That charming Arcadia fixer with foundation cracks won't pass. Properties need to be move-in ready.
Down payment is the obvious split—VA needs none, conventional requires 3-20%. But the real difference is total cost. VA's funding fee and stricter appraisals add complexity.
In Arcadia's market, conventional buyers close 5-7 days faster on average. VA appraisers are pickier about roof condition, paint, and safety rails. That matters when you're competing for homes.
Use VA if you have under 10% down. The funding fee stings, but avoiding PMI and preserving cash matters more. Just budget extra time for the appraisal.
Go conventional if you have 20% down or want a fixer-upper. You'll skip PMI, face fewer property restrictions, and compete better in multiple offers. Veterans with strong savings often pick conventional.
Yes, but the complex must be VA-approved. Many Arcadia HOAs aren't on the VA list, which limits your options significantly.
No. You pay 2.3% of the loan amount on first use, and it's non-refundable even if you refinance later.
Sometimes. Sellers worry about appraisal issues and longer timelines. A strong conventional offer with 20% down usually wins.
Yes if you're 10%+ disabled or a surviving spouse. Otherwise you pay it, though subsequent uses drop to 1.4%.
Rates vary by borrower profile and market conditions. VA rates run slightly lower, but the funding fee offsets that advantage.