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in Burbank, CA
Both FHA and VA loans help Burbank buyers who can't put 20% down. The difference is eligibility: FHA accepts almost anyone with decent credit, while VA requires military service but offers better terms.
Most Burbank buyers choose based on military status first, loan costs second. VA loans cost less over time if you qualify, but FHA gets you in the door faster with fewer hoops.
FHA loans let you buy with 3.5% down if your credit score hits 580. Burbank condos, single-family homes, and duplexes all qualify as long as they meet FHA property standards.
You'll pay two types of mortgage insurance: an upfront fee of 1.75% and annual premiums between 0.55% and 1.05% depending on your down payment. These stick around for the life of most FHA loans, unlike conventional PMI that drops off.
Credit requirements flex lower than conventional loans. We close FHA deals regularly with scores in the 580-620 range, though better credit gets you better rates.
VA loans require zero down payment for eligible veterans and active-duty service members. No monthly mortgage insurance either, which saves hundreds per month compared to FHA.
You pay a one-time funding fee instead: 2.3% for first-time use with zero down, which drops to 1.65% if you put down 5% or more. Veterans with service-connected disabilities get this fee waived entirely.
VA loans allow higher debt ratios than FHA, sometimes up to 50% or more with strong compensating factors. Credit score minimums vary by lender but typically start around 580-600.
The cost gap widens fast. On a $800,000 Burbank home, FHA requires $28,000 down plus $490 monthly mortgage insurance. VA needs zero down and zero monthly insurance—that's $490 monthly savings, nearly $6,000 per year.
Property standards differ too. VA appraisers check more items than FHA, especially roof condition and HVAC function. Older Burbank homes sometimes need repairs to pass VA inspection that FHA would overlook.
Sellers react differently to each loan type. Some Burbank sellers prefer FHA because the appraisal process moves faster. Others welcome VA buyers because zero down payment means more qualified buyers in the pool.
If you're military-eligible, VA wins on costs alone. The monthly insurance savings and zero down requirement beat FHA every time, even with the funding fee. Only skip VA if the property won't pass inspection and the seller won't make repairs.
Non-military buyers default to FHA when they can't reach 20% down for conventional. It costs more than VA but remains the best low-down-payment option for civilians. Burbank's mix of older and newer homes works fine with FHA standards.
Some military buyers still choose FHA if they're buying a fixer-upper that won't pass VA standards. FHA allows more property condition flexibility, though you pay for that flexibility with higher monthly costs.
Not simultaneously, but military buyers can choose either option. VA almost always costs less over time due to no monthly mortgage insurance.
FHA typically closes 2-3 days faster because VA appraisals require more property inspections. Both usually close within 30 days with experienced brokers.
Some prefer conventional financing, but both FHA and VA offers compete well with proper preparation. Pre-approval strength matters more than loan type in most cases.
No. FHA requires mortgage insurance for the loan life unless you put down 10% or more, then it drops after 11 years. VA has no monthly insurance at any down payment level.
Both work if the condo project is approved. VA has a shorter approved list, so check project eligibility before making an offer on a Burbank condo.
FHA caps at $644,000 for Los Angeles County in 2024. VA has no loan limit for full entitlement, so qualified veterans can borrow higher amounts without down payments.