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in Baldwin Park, CA
Both FHA and VA loans offer low-barrier entry into Baldwin Park homeownership, but they serve different borrowers. FHA is open to anyone who qualifies, while VA is exclusively for military members and veterans.
We see Baldwin Park buyers choose between these programs based on eligibility and upfront costs. VA loans require zero down and no monthly mortgage insurance, which often makes them the better deal when you qualify.
FHA loans let you buy with just 3.5% down if your credit score hits 580. They work for primary residences and accept debt-to-income ratios up to 50% with strong compensating factors.
You'll pay both upfront mortgage insurance (1.75% of the loan) and monthly premiums for the life of the loan. This adds $200-300 monthly on typical Baldwin Park purchases, which affects your buying power.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee (2.3% for first use) that gets rolled into your loan amount.
Lenders typically want 620+ credit scores, though the VA itself sets no minimum. We can close VA loans faster than FHA because VA appraisals focus on safety rather than cosmetic repairs.
The biggest gap is eligibility: VA requires military service while FHA is available to anyone. But if you qualify for both, VA usually costs less monthly because you skip mortgage insurance premiums entirely.
FHA accepts lower credit scores and smaller down payments from non-military buyers. VA offers better long-term value through lower monthly costs and more flexible occupancy rules if you need to relocate.
If you're eligible for VA benefits, use them. The zero-down and no-PMI structure saves you thousands annually compared to FHA on the same Baldwin Park property.
Choose FHA when you're not military-connected or your credit sits below 620. It's the most accessible government program for first-time buyers who can't qualify for conventional financing.
No, each property needs one loan type. You'd use VA for one home and potentially FHA for another if buying multiple properties, but not both on the same purchase.
VA typically closes 3-5 days faster because appraisers focus on safety rather than cosmetic repairs. FHA appraisers often require sellers to fix minor issues before closing.
Both follow Los Angeles County limits. FHA caps at $644,000 for single-family homes, while VA matches that amount for zero-down purchases without hitting funding fees.
Yes, VA streamline refinances let you switch from FHA once you have equity. This move eliminates mortgage insurance and often lowers your rate simultaneously.
FHA accepts 580 credit scores with 3.5% down. VA lenders typically require 620+ even though VA itself has no minimum, making FHA more accessible for rebuilding credit.