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in Cerritos, CA
Both FHA and VA loans help Cerritos buyers with limited cash get into homes. FHA requires just 3.5% down while VA offers zero down for eligible veterans.
The right choice depends on your military service status and budget. Veterans almost always benefit more from VA loans due to no down payment and no mortgage insurance.
FHA loans work for first-time buyers and those with credit scores as low as 580. You need 3.5% down plus closing costs, usually 2-3% of the purchase price.
Mortgage insurance costs include an upfront premium of 1.75% and annual premiums around 0.55-0.85%. These fees never drop off for down payments under 10%.
FHA caps how much sellers can contribute to your closing costs at 6%. This gives you flexibility to negotiate repairs or rate buydowns into the deal.
VA loans require zero down payment and never charge mortgage insurance. Active military, veterans, and qualifying spouses all remain eligible for this benefit.
You pay a one-time funding fee between 1.4-3.6% depending on service type and down payment. Veterans with service-connected disabilities get this fee waived completely.
VA appraisals tend to be stricter than FHA because they require specific safety standards. Homes need working heat, safe water, and structural soundness to pass.
Down payment splits these loans apart. FHA needs 3.5% saved while VA asks for nothing upfront beyond closing costs and the funding fee.
Monthly payments favor VA loans heavily. A $600K Cerritos home with FHA costs roughly $250 more per month due to mortgage insurance premiums.
Eligibility creates the biggest divide. FHA accepts any qualified borrower while VA demands military service or survivor benefits.
Sellers often prefer FHA offers because VA appraisals can kill deals over minor repairs. This matters less in Cerritos where most homes stay well-maintained.
Choose VA if you qualify through military service. Zero down plus no mortgage insurance beats FHA in almost every scenario for eligible borrowers.
Pick FHA if you lack military credentials but need a low down payment. It remains the best government option for civilian buyers with limited savings.
Both loans work well in Cerritos neighborhoods where homes typically meet condition standards. The choice comes down to eligibility and monthly budget.
Some veterans still use FHA when buying fixer properties that won't pass VA appraisal. This happens rarely but matters for older homes needing work.
Yes, VA loan benefits restore after you sell and pay off the previous loan. You can use them multiple times throughout your life.
VA and FHA closing costs run similar at 2-3% of purchase price. VA funding fees cost more upfront but save money long-term through no mortgage insurance.
Both typically close in 30-45 days. VA appraisals may take slightly longer but rarely delay closings significantly.
Yes, sellers can pay up to 4% toward your closing costs with VA loans. This often covers your entire funding fee.
FHA officially accepts 580 credit scores while VA has no minimum. Most VA lenders still want 620 or higher in practice.