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in Artesia, CA
Both FHA and VA loans help buyers stretch their down payment in Artesia. But they're designed for different people with different benefits.
FHA loans work for anyone who qualifies. VA loans are exclusive to military families but come with stronger advantages if you're eligible.
FHA loans accept credit scores as low as 580 with 3.5% down. You can buy in Artesia with less than perfect credit and limited savings.
The tradeoff is mortgage insurance for the life of the loan. You'll pay an upfront premium plus monthly premiums that add to your payment permanently unless you refinance.
VA loans eliminate the down payment entirely for eligible veterans and service members. You can buy in Artesia with zero cash at closing beyond standard costs.
You'll pay a one-time funding fee but no monthly mortgage insurance. That difference adds up to hundreds per month compared to FHA on the same loan amount.
The down payment gap is obvious. FHA needs 3.5% while VA needs nothing if you qualify.
Monthly costs favor VA loans heavily. An FHA loan on a $600,000 Artesia home costs roughly $350 more per month in mortgage insurance versus the VA funding fee structure.
Eligibility is the deciding factor for most buyers. You need military service history for VA loans while anyone who meets credit and income standards can use FHA.
If you're eligible for a VA loan, use it. The savings on mortgage insurance and zero down requirement beat FHA in almost every scenario.
FHA makes sense when you're not military-connected or when your credit sits below VA lender overlays. Some lenders want 620+ for VA even though the program technically allows lower scores.
No, you pick one loan type per property. But you can have an FHA loan on one property and later use your VA benefit on another purchase.
VA loans typically price 0.25% to 0.50% lower than FHA. Rates vary by borrower profile and market conditions, but VA consistently wins on pricing.
Both programs accept self-employment income with two years of tax returns. VA tends to be slightly more flexible with income calculations and debt ratios.
Yes if you're receiving VA disability compensation. Otherwise the fee is required but can be rolled into your loan amount instead of paid upfront.
FHA approves more condo projects since the approval process is simpler. VA has stricter condo requirements that eliminate some complexes from eligibility.