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in Azusa, CA
Both FHA and VA loans offer government backing that makes lenders more comfortable with lower down payments. The catch: FHA charges mortgage insurance for the life of the loan, while VA loans skip it entirely but require military service.
In Azusa's competitive Los Angeles County market, these loans open doors for buyers who can't swing 20% down. The right choice depends on whether you qualify for VA benefits and how much monthly payment room you have.
FHA loans let you buy with 3.5% down if your credit score hits 580. Below that, you need 10% down. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that run 0.55% to 1.05% of your loan amount.
The mortgage insurance sticks around for life on most FHA loans, which adds $200-$400 monthly on a typical Azusa purchase. These loans work for primary residences only and cap at Los Angeles County's conforming limit of $1,149,825 for 2024.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee that ranges from 1.4% to 3.6% depending on your service type and whether it's your first VA loan. Many disabled veterans get this fee waived entirely.
Most lenders want 620+ credit for VA loans, though some go lower with strong compensating factors. These loans have no maximum loan amount in Los Angeles County, making them powerful for higher-priced Azusa properties when you qualify.
The biggest gap is monthly cost. On a $600,000 Azusa home, FHA costs roughly $275 more per month than VA due to mortgage insurance. That's $3,300 annually you're sending to an insurance company instead of building equity.
Down payment also splits them hard. FHA needs $21,000 down on that same purchase while VA needs nothing. But you must be military-connected for VA, which FHA doesn't care about at all.
If you're military-eligible, VA wins in almost every scenario. Lower monthly costs, no down payment, and better rates make it the obvious choice. The only time FHA makes sense for veterans is when property condition issues block VA appraisal approval.
Non-veterans don't get to choose. FHA becomes your best government-backed option if you can't hit 20% down for conventional. Just factor that permanent mortgage insurance into your monthly budget calculations before committing to a purchase price.
Yes, but it rarely makes financial sense. VA's zero down and no mortgage insurance save you thousands annually compared to FHA's permanent insurance premiums.
Yes, but the condo project must be FHA or VA approved. Many Los Angeles County complexes have both approvals, though some only carry one.
FHA typically edges out VA by 3-5 days because VA appraisals require additional property inspections. Both take 30-45 days on average.
Absolutely. Many veterans start with FHA before knowing about VA benefits, then refinance to drop mortgage insurance and lower their rate.
Some agents push back on both government loans, but VA faces slightly more resistance due to stricter appraisal requirements. Cash-heavy markets magnify this bias.