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in Bell Gardens, CA
Both FHA and VA loans offer government backing with easier qualification than conventional mortgages. The main split: FHA requires 3.5% down and works for anyone who qualifies, while VA demands no down payment but you must be military-connected.
Bell Gardens buyers often choose between these two when conventional loans feel out of reach. Both skip the hefty down payments most lenders want, but they come with different cost structures and eligibility gates.
FHA loans let you buy with just 3.5% down if your credit score hits 580. You'll pay mortgage insurance premiums upfront (1.75% of the loan) plus monthly premiums for the loan's life in most cases.
Credit scores as low as 500 work with 10% down. Sellers can contribute up to 6% toward closing costs, which helps when cash is tight. The catch: that mortgage insurance never drops off on most FHA loans originated after 2013.
VA loans eliminate the down payment entirely for eligible veterans and active-duty service members. You pay a one-time funding fee (typically 2.3% for first use) but no monthly mortgage insurance ever.
Credit requirements are flexible—most lenders want 620 minimum but the VA itself sets no floor. Sellers can pay all closing costs if negotiated. You can reuse the benefit multiple times across your lifetime.
The math changes fast between these two. VA borrowers skip the down payment and avoid monthly mortgage insurance, which can save $200-400 monthly on a typical Bell Gardens home. FHA borrowers put 3.5% down but carry mortgage insurance forever.
Eligibility separates them cleanly: anyone with decent credit qualifies for FHA, but VA demands a Certificate of Eligibility proving military connection. Rates vary by borrower profile and market conditions, though VA rates typically run slightly lower.
If you're military-eligible, VA wins on pure economics—no down payment and no monthly insurance beat FHA's structure. The only reason to choose FHA over VA when you qualify for both is property type, since VA has stricter condition requirements.
Civilians default to FHA when conventional loans won't approve them. The 3.5% down payment makes homeownership accessible in Bell Gardens without years of saving. Just factor in that mortgage insurance cost when calculating what you can afford monthly.
Yes, and you probably should. VA's zero down payment and no monthly insurance save significantly more than FHA over time.
FHA typically closes quicker since VA appraisals take longer due to stricter property condition requirements. Expect 30-45 days for either.
Sellers often prefer FHA because VA appraisals are stricter about repairs. Cash buyers still win, but both government loans compete fairly against conventional.
Yes, if you become military-eligible. Many borrowers drop FHA insurance by refinancing into VA once they qualify through service.
FHA officially accepts 580 for 3.5% down and 500 for 10% down. VA has no minimum but most lenders want 620.