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in Carson, CA
Both FHA and VA loans help Carson buyers get into homes with less cash upfront than conventional mortgages require. The key difference: VA loans are only for military-connected borrowers, while FHA loans are open to anyone who qualifies.
We see these two loan types compete in Carson constantly. Your eligibility determines which path you take, but if you qualify for VA, it usually beats FHA on total cost.
FHA loans let you put down as little as 3.5% if your credit score hits 580. That's $17,500 down on a $500,000 Carson home versus $100,000 for a conventional 20% down payment.
You'll pay mortgage insurance premiums both upfront and monthly for the life of most FHA loans. The upfront premium is 1.75% of the loan amount, typically rolled into your mortgage. Monthly premiums run 0.55% to 0.85% annually depending on your loan size and down payment.
Credit requirements are flexible. We've closed FHA deals in Carson with scores as low as 580, and some lenders go to 500 with 10% down. Debt-to-income ratios can stretch to 50% with compensating factors.
VA loans require zero down payment if you have valid Certificate of Eligibility. That means you can buy a Carson home with only closing costs in hand, keeping your savings intact.
There's no monthly mortgage insurance. You pay a one-time funding fee instead, ranging from 1.4% to 3.6% of the loan amount based on down payment and whether you've used the benefit before. Veterans with service-connected disabilities pay no funding fee at all.
Credit standards are lenient. Most lenders want 620 minimum, but we've worked with some that go lower for strong compensating factors. The VA doesn't set a minimum credit score, leaving it to individual lenders.
Upfront costs favor VA dramatically. Zero down beats 3.5% down, and the VA funding fee is lower than FHA's upfront mortgage insurance premium for most borrowers. A veteran buying a $500,000 Carson home saves $17,500 in down payment compared to FHA.
Monthly payments stay lower with VA because there's no mortgage insurance dragging them up. On that same $500,000 purchase, FHA mortgage insurance adds roughly $240 monthly. Over 30 years, that's $86,400 you don't pay with VA.
Eligibility is the dealbreaker. FHA opens to everyone meeting income and credit requirements. VA demands military service as an active-duty member, veteran, reservist, National Guard member, or surviving spouse of someone who served.
If you qualify for VA, use it. The cost savings over FHA are substantial, and the zero-down option preserves cash for repairs, furniture, or reserves. We rarely see situations where FHA makes more sense for an eligible veteran.
FHA shines when you don't have military eligibility and need a low down payment with flexible credit. It's the strongest option for Carson buyers with limited savings or past credit issues who don't qualify for conventional financing.
Some Carson buyers start with FHA then refinance to conventional once they hit 20% equity to drop mortgage insurance. That strategy works if rates stay favorable. Veterans typically stay in VA loans long-term since there's no mortgage insurance to escape.
Yes. Active-duty service, reserve duty, and National Guard service all build VA loan eligibility. Deployment isn't required.
No. FHA approves borrowers with 580 credit scores regularly. Some lenders go to 500 with larger down payments.
Both programs require homes to meet safety and habitability standards. Major repairs must be completed before closing.
VA rates typically run slightly lower than FHA. Both usually beat conventional rates for buyers with smaller down payments.
Only if you put down 10% or more originally—then it drops after 11 years. Otherwise it stays for the loan life.
No income limits exist. You just need sufficient income to cover the mortgage payment and meet debt ratio requirements.