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in Compton, CA
If you're a veteran or active military in Compton, you've got a massive advantage most buyers don't. VA loans let you buy with zero down and no monthly mortgage insurance.
Conventional loans still dominate the market here, but they require at least 3% down and force you to pay PMI until you hit 20% equity. For eligible service members, that's money left on the table.
Conventional loans are the standard mortgage choice for most Compton buyers. You'll need at least 620 credit and 3% down, though 20% down gets you better rates and kills the PMI requirement.
These loans max out at $806,500 for single-family homes in Los Angeles County right now. That covers most Compton properties with room to spare, giving you flexibility across neighborhoods.
VA loans are built for one thing: getting veterans into homes without upfront cash barriers. Zero down payment means your entire savings can go toward closing costs or upgrades instead of a down payment.
The big win is no monthly mortgage insurance ever, regardless of your down payment. On a typical Compton purchase, that saves you $150-300 monthly compared to a low-down conventional loan.
Down payment separates these loans immediately. Conventional requires 3-20% cash, while VA needs nothing upfront if you qualify.
Mortgage insurance is the second major split. Conventional loans under 20% down force you to pay PMI monthly until you build equity. VA loans never charge PMI, though you'll pay a one-time funding fee that gets rolled into the loan.
Eligibility is the obvious divider. Anyone with decent credit and income can get a conventional loan. VA loans require military service or surviving spouse status, but if you qualify, you're getting the better deal in most Compton scenarios.
If you're eligible for a VA loan in Compton, use it. The zero-down structure and no PMI make it unbeatable for service members buying a primary residence.
Conventional loans make sense when you're not VA-eligible, buying an investment property, or dealing with a fixer that won't pass VA appraisal standards. They're also faster to close when competing against multiple offers, since sellers know conventional loans have fewer inspection requirements.
VA appraisals are strict about property condition. Major issues like roof damage or broken HVAC will kill the deal until repairs are done.
Most do, but cash and conventional offers move faster. Strengthen your VA offer by covering your own closing costs and being flexible on timelines.
Conventional requires 620 minimum. VA technically has no floor, but most lenders want 580+ for competitive rates.
No legal way around it. You'll pay PMI monthly until you hit 20% equity through payments or appreciation.
It's 2.15% for first-time use with zero down. Veterans with service-connected disabilities get it waived entirely.