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in Covina, CA
Covina buyers with military service face a choice most civilians don't get: use your VA benefit or go conventional. Both work in this San Gabriel Valley market, but they solve different problems.
Conventional loans reward strong credit and cash reserves. VA loans eliminate down payments and mortgage insurance entirely. Your decision hinges on how much you've saved and whether you qualify for VA benefits.
Conventional loans are the default choice for non-military buyers. You'll need at least 3% down, though 20% avoids private mortgage insurance. Credit scores below 620 rarely get approved.
These loans cap at conforming limits for most Covina properties. You'll pay PMI monthly until you hit 20% equity. Rates stay competitive because lenders take less risk than government programs.
VA loans let eligible service members buy without a down payment. No PMI ever, regardless of equity. The VA backs part of the loan, so lenders accept lower credit scores than conventional.
You'll pay a one-time funding fee, typically 2.3% for first use. Veterans with service-connected disabilities get this waived. The zero-down structure helps buyers who spent years moving between duty stations instead of saving.
The down payment split is the headline difference. Conventional requires cash upfront; VA doesn't. But VA charges that funding fee, which many borrowers roll into the loan amount.
Monthly payments favor VA even after the funding fee. No PMI saves $100-300 monthly on typical Covina home prices. Conventional beats VA only if you're putting 20%+ down anyway, since both skip mortgage insurance at that threshold.
Use VA if you qualify and have under 20% saved. The math heavily favors zero down plus no PMI. Conventional only makes sense for veterans if you're buying a non-conforming property VA won't finance.
Non-military buyers default to conventional since VA isn't available. If you're eligible and buying in Covina's median price range, VA wins on cost in nearly every scenario. Save your cash for repairs and furniture instead of a down payment.
Yes, if the complex is VA-approved. Many Covina condos qualify, but the HOA must meet VA requirements. Check approval status before making offers.
Not significantly with experienced lenders. Both typically close in 25-35 days. VA appraisals add 2-3 days but rarely delay closing if you order early.
Only if buying a property type VA won't finance or if you have 20%+ down and want to preserve VA eligibility for a future purchase. Otherwise VA costs less.
Typically 0.5-1.5% of the loan amount annually, paid monthly. On a $600K loan with 5% down, expect $250-400 per month until you reach 20% equity.
Yes, if you have a service-connected disability rating. Veterans receiving VA compensation are exempt. All others pay 2.3% for first use, 3.6% for subsequent use.