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in Calabasas, CA
Calabasas buyers face a choice between two strong loan programs. Conventional loans offer flexibility for any qualified borrower, while VA loans deliver unbeatable terms for veterans and active military.
Both work well in this market, but the right choice depends on your service history and down payment situation. Veterans skip PMI and down payments entirely with VA financing.
Conventional loans are the workhorse of California real estate. You need 620+ credit and 3-20% down depending on your loan-to-value target.
Put down less than 20% and you pay PMI until you hit 78% LTV. Rates vary by borrower profile and market conditions, but strong credit scores unlock the best pricing.
These loans handle any property type and work for purchases or refinances. Loan limits go up to $766,550 for conforming loans, higher for jumbo.
VA loans are the strongest benefit most veterans never use. Zero down payment, no monthly mortgage insurance, and competitive rates backed by the Department of Veterans Affairs.
You pay a one-time funding fee (waived for disabled veterans), but you skip the ongoing PMI that conventional borrowers pay. Credit requirements are more forgiving than conventional standards.
Property must be your primary residence and pass VA appraisal standards. Sellers cover some closing costs in most California transactions.
The biggest split is down payment. Conventional requires 3-20% cash, VA requires nothing. A $1.2M Calabasas home means $36K-$240K down for conventional buyers versus $0 for eligible veterans.
Mortgage insurance is the second major gap. Conventional borrowers pay $150-$400 monthly until they hit 20% equity. VA borrowers never pay PMI, just a one-time funding fee rolled into the loan.
Property restrictions differ too. Conventional works for any home type including investment properties. VA limits you to primary residence only and requires stricter property condition standards.
If you qualify for VA benefits, use them. The math is simple: zero down and no PMI beat conventional terms in almost every scenario. Veterans shopping Calabasas save tens of thousands upfront.
Conventional makes sense when VA doesn't apply to you or when you're buying a second home or investment property. It's also the better choice if you want faster closing timelines, since VA appraisals add processing time.
Some Calabasas sellers prefer conventional offers because they close more predictably. But a strong VA offer with a motivated lender still wins plenty of deals in this market.
No. VA loans require you to occupy the home as your primary residence. Investment properties need conventional or other investor-focused financing.
Typically $150-$400 monthly depending on down payment and credit score. You pay it until you reach 20% equity in the home.
Sometimes. VA appraisals can add 5-10 days to the process due to stricter property standards and appraiser availability.
Yes if you're a disabled veteran receiving VA compensation. Otherwise the funding fee is required but can be financed into your loan amount.
Conventional typically requires 620 minimum. VA loans are more flexible, with many lenders approving scores as low as 580-600.
Yes. You can restore your entitlement after selling or paying off a previous VA loan. Some veterans use VA benefits for multiple purchases.