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in Azusa, CA
Azusa homebuyers face a clear choice between conventional and VA financing, each with distinct advantages. Veterans and service members get access to zero-down VA loans, while conventional borrowers need stronger credit but gain flexibility.
Both loan types work well in Los Angeles County's competitive market. The right choice depends on your military status, down payment capacity, and property type you're targeting in Azusa.
Conventional loans require 620+ credit and down payments starting at 3% for first-time buyers. These mortgages work for any property type in Azusa and don't carry upfront funding fees that government loans impose.
You'll pay PMI if you put down less than 20%, but you can remove it once you hit 20% equity. Rate pricing depends heavily on credit score and down payment size, with the best terms going to 740+ scores with 20% down.
VA loans let eligible veterans and service members buy in Azusa with zero down payment and no monthly mortgage insurance. You pay a one-time funding fee between 1.4-3.6% depending on down payment and whether it's your first VA loan use.
Credit requirements are more flexible than conventional, though most lenders still want 620+. Sellers can pay all your closing costs, and you can finance the funding fee into the loan amount instead of bringing cash.
The biggest split is down payment: VA requires nothing while conventional needs 3-20%. VA borrowers avoid monthly PMI entirely, but pay an upfront funding fee that conventional buyers don't face.
Property standards matter more with VA loans. VA appraisers flag issues conventional appraisers might pass, which can kill deals on fixer properties in older Azusa neighborhoods. Conventional financing moves faster and works on any property condition.
If you're VA-eligible and buying a move-in ready home in Azusa, use your VA benefit. Zero down beats 3% conventional every time, and no PMI saves you $150-300 monthly compared to low-down conventional loans.
Go conventional if you're buying a fixer, condo with VA certification issues, or investment property. Also choose conventional if you're not VA-eligible or already used your entitlement on another property you're keeping.
VA loans require properties to meet minimum property requirements that conventional loans don't enforce. Homes need working systems, safe conditions, and no major defects that appraisers flag.
VA loans typically price 0.25-0.50% lower than conventional for the same borrower profile. Rates vary by borrower profile and market conditions, but VA usually wins on rate.
Most lenders want 620+ for both loan types. VA guidelines are more flexible on credit, but individual lenders set their own overlays in practice.
First-time VA users pay 2.3% with zero down, dropping to 1.65% with 5% down. Subsequent uses cost 3.6% with zero down, but you can finance the fee into your loan.
You need 20% down to avoid PMI on conventional loans, or use lender-paid PMI with a higher rate. VA loans skip monthly mortgage insurance entirely at any down payment level.