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in Bell Gardens, CA
Bell Gardens homebuyers face a clear choice: conventional financing or VA benefits. Each loan type plays by different rules on down payments, credit requirements, and long-term costs.
Veterans in Los Angeles County often assume VA loans always beat conventional options. That's not always true—the right choice depends on your credit profile, savings, and how long you plan to own the property.
Conventional loans require 3-20% down depending on your credit and the lender. You'll need a 620 minimum FICO score, though 700+ gets you better rates.
Private mortgage insurance kicks in below 20% down, adding $100-300 monthly on a Bell Gardens median-priced home. Once you hit 20% equity, PMI drops off—unlike VA funding fees that never go away.
VA loans put zero down on the table for eligible service members and veterans. No monthly mortgage insurance either—just a one-time funding fee of 2.3% for first-time users with no down payment.
Credit standards run looser than conventional programs. Most lenders approve 580-600 FICO scores for VA loans, though you'll find better rates above 640.
The funding fee versus PMI calculation matters more than most borrowers realize. VA's 2.3% upfront fee on a $500K Bell Gardens home costs $11,500—financed over 30 years, that's about $52 monthly. Conventional PMI at 0.5% runs $208 monthly but disappears at 20% equity.
Property eligibility splits these loans apart. Conventional financing works for any residential property meeting standard appraisal requirements. VA loans require properties to meet specific habitability standards and must be your primary residence—no rentals or second homes.
Choose VA if you're eligible and have limited savings for down payment. The zero-down benefit beats conventional financing when you're starting with under 10% to put down, especially with credit scores below 680.
Go conventional if you have 10-20% down payment ready or you're buying a property that won't pass VA habitability standards. Also pick conventional when buying a second home or investment property—VA won't touch those deals.
Yes. Active-duty service members qualify for VA loans after 90 consecutive days of service. You'll need your Certificate of Eligibility from the VA to start the process.
VA loans typically run 0.25-0.5% lower than conventional rates for the same borrower profile. Rates vary by credit score, loan amount, and current market conditions.
Conventional loans usually close 2-3 days faster since VA requires additional property inspections. Both typically close in 30-40 days with complete documentation.
Yes if you receive VA disability compensation or you're a surviving spouse. Veterans with 10%+ disability rating get full funding fee waivers.
Most lenders approve VA loans at 580-600 FICO. Conventional loans need 620 minimum, though 700+ unlocks better rates and lower down payment options.
Yes through a VA cash-out or rate-term refinance. You'll pay the VA funding fee again, but eliminating PMI often makes the switch worthwhile.