Loading
in Arcadia, CA
Both FHA and VA loans offer lower barriers to entry than conventional mortgages, but they serve different borrowers. FHA accepts anyone who qualifies, while VA requires military service.
In Arcadia's competitive market, knowing which program gives you the best terms can mean thousands saved. Your service record determines whether you even have a choice.
FHA loans require just 3.5% down with a 580 credit score. You'll pay an upfront mortgage insurance premium of 1.75%, plus monthly MI that doesn't drop off.
This program works for first-time buyers and repeat purchasers alike. The catch is ongoing mortgage insurance that raises your payment compared to conventional loans once you hit 20% equity.
VA loans require zero down payment and no monthly mortgage insurance. You pay a funding fee between 1.4% and 3.6% depending on your service type and whether you've used the benefit before.
Credit standards are flexible, often accepting 580-600 scores. Lenders can't charge you for certain fees, and the appraisal includes stricter property condition requirements.
The down payment split is obvious: VA needs nothing, FHA needs 3.5%. But the bigger gap shows up in monthly costs where VA avoids mortgage insurance entirely.
On a $900,000 Arcadia home, FHA mortgage insurance runs roughly $450-550 monthly. VA has none. That difference compounds to $60,000+ over a 10-year hold period.
If you qualify for VA, use it. The zero-down and no-MI structure beats FHA in almost every scenario unless the property fails VA appraisal standards.
FHA makes sense when you're not military-connected or when you're buying a fixer that won't pass VA inspection. Most Arcadia properties pass both programs, so eligibility decides this one.
No, you pick one. If you're VA-eligible, that's almost always the better financial choice due to zero down and no mortgage insurance.
Both accept 580 scores, but VA lenders often show more flexibility on credit events. FHA has clearer guidelines but less negotiating room.
VA appraisals have stricter property standards, which can worry sellers. FHA is more predictable, but a strong offer overcomes program type.
FHA caps at $1,149,825 in Los Angeles County. VA has no limit if you have full entitlement or put down 25% of the excess.
Yes, if you become military-eligible or didn't know you qualified. You can use a VA cash-out refi to drop FHA mortgage insurance.