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in Claremont, CA
Claremont buyers often choose between conventional financing and VA loans if they qualify. The right pick depends on your military status, down payment savings, and credit profile.
Conventional loans offer flexibility for anyone who meets lender requirements. VA loans give eligible veterans zero-down access with no mortgage insurance, but come with eligibility restrictions.
Conventional loans aren't backed by the government. You typically need 620+ credit and at least 3% down, though 20% down eliminates mortgage insurance.
These loans hit conforming limits at $806,500 in Los Angeles County. Above that, you jump to jumbo territory with stricter requirements and higher rates.
VA loans guarantee financing for veterans, active-duty military, and qualifying spouses. You put zero down and pay no monthly mortgage insurance, ever.
You'll pay a one-time VA funding fee that varies by service type and down payment. The loan limit in LA County is $806,500 with zero down for full entitlement.
The biggest split is down payment and insurance. VA gives qualified borrowers zero down with no PMI. Conventional requires 3-20% down and charges PMI below 20% equity.
VA rates often run 0.25-0.50% lower than conventional because the government guarantee reduces lender risk. That rate edge compounds over 30 years into serious savings.
If you qualify for VA, use it. The zero-down structure and lack of PMI beats conventional math in almost every scenario, even with the funding fee.
Use conventional if you're not eligible for VA or buying above $806,500 with limited down payment. Sellers sometimes prefer conventional offers because VA appraisals scrutinize property condition more closely.
Yes. You can restore full entitlement after selling and paying off the previous VA loan. Some veterans retain partial entitlement for second purchases.
Often, yes. VA appraisals take longer and flag repair items that conventional appraisers might pass. Budget 35-45 days for VA vs 30-35 for conventional.
Most VA lenders approve at 580-600 credit. Conventional typically requires 620 minimum. Both offer better rates above 700.
Veterans with service-connected disabilities are exempt. Everyone else pays 1.4-3.6% depending on service type, down payment, and prior VA loan use.
Both work if the project is approved. VA has stricter condo approval requirements. Conventional clears more projects faster.