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in Cerritos, CA
Cerritos buyers often face this choice: put 3-5% down with a conventional loan or use VA benefits for zero down. Both work in Los Angeles County's competitive market, but they serve different borrower profiles.
Conventional loans dominate suburban Cerritos because most buyers aren't veterans. VA loans crush conventional options for qualified service members who want to keep cash liquid.
Conventional loans need 620+ credit and documented income through W-2s or tax returns. You'll pay PMI on anything under 20% down until you hit 78% loan-to-value, adding $100-300 monthly on typical Cerritos purchases.
These loans cap at $806,500 for conforming rates in Los Angeles County. Go higher and you're into jumbo territory with stricter requirements and slightly higher rates.
VA loans waive the down payment entirely for eligible veterans and active-duty service members. You'll pay a one-time funding fee of 2.15-3.3% depending on service type, but sellers often cover this in negotiations.
No PMI ever, regardless of down payment. Credit standards flex lower than conventional, with many lenders approving 580+ scores. The conforming limit jumps to $806,500 in Los Angeles County with zero down required.
Down payment separates these programs sharply. Conventional demands 3-20% upfront while VA requires nothing. On a $700,000 Cerritos home, that's $21,000-$140,000 versus zero at closing.
Monthly costs differ significantly too. Conventional buyers pay PMI until 20% equity, adding years of extra payments. VA borrowers skip PMI entirely but finance the upfront funding fee into the loan balance.
If you've served and have a VA certificate of eligibility, this isn't close. Zero down and no PMI save you $30,000-$50,000 in the first five years on a typical Cerritos purchase. Use conventional only if you've exhausted VA entitlement.
Non-veterans default to conventional loans. If you've got 20% down, you avoid PMI and often secure slightly better rates than VA. Below 20% down, conventional still works but costs more monthly than a VA loan would for qualified veterans.
Yes, but you'd give up zero down and no PMI benefits. Most veterans lose money choosing conventional over VA financing.
Both close in 21-30 days with competent lenders. VA's reputation for slow processing is outdated with experienced VA brokers.
Sellers prefer conventional because fewer buyers qualify for VA. Strong VA pre-approvals compete equally in practice.
Yes, before closing. Expect to restart underwriting and delay your closing date by 2-3 weeks minimum.
Yes, if the complex is VA-approved for VA loans. Conventional financing works on any warrantable condo project.