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in Cudahy, CA
Cudahy buyers face a clear fork in the road if they qualify for VA benefits. Conventional loans demand 3-20% down and mortgage insurance under 20%. VA loans require zero down and skip PMI entirely.
Most Cudahy veterans I work with assume VA is automatically better because of no down payment. That's true 70% of the time. But conventional wins when you're buying a fixer or need to close in under 21 days.
Conventional loans work through Fannie Mae or Freddie Mac guidelines. You need 620+ credit and 3% down minimum. If you put down less than 20%, you'll pay PMI until you hit 20% equity.
These loans close in 18-25 days with clean files. They work on condos, fixers, and investment properties without the appraisal restrictions VA imposes. Rates vary by borrower profile and market conditions, but 740+ credit gets you the best pricing.
VA loans are backed by the Department of Veterans Affairs for eligible military borrowers. Zero down payment. No monthly mortgage insurance. Credit scores as low as 580 get approved with the right lender.
You'll pay a VA funding fee upfront—2.3% for first-time zero-down buyers, lower if you've used the benefit before. That fee can be rolled into the loan amount. Sellers can pay all your closing costs in Cudahy, which is a huge advantage in competitive situations.
Down payment is the headline difference. Conventional needs 3-20%. VA needs nothing. But appraisals tell the real story—VA appraisers flag peeling paint, missing handrails, and roof wear that conventional appraisers ignore.
Closing speed matters in Cudahy's tight inventory. Conventional loans close 5-7 days faster because VA appraisals take longer and require stricter property conditions. If you're competing against cash or conventional offers, that timeline gap costs deals.
Choose VA if you have limited cash and you're buying a turnkey property. Zero down and no PMI save you $8,000-$15,000 upfront on typical Cudahy home purchases. You can't beat that math when the home passes appraisal.
Go conventional if the property needs work, you're buying a condo with VA appraisal issues, or you need to close in under 21 days. I also push conventional when buyers have 10%+ down and 760+ credit—the rate advantage often beats VA even with PMI factored in.
Technically yes, but VA appraisers flag repairs conventional appraisers ignore. Peeling paint, cracked windows, and worn roofs kill VA deals. Those repairs must close before funding.
Not always. VA rates run 0.25-0.50% lower for average credit borrowers. But 760+ credit conventional borrowers often beat VA rates by 0.125-0.25% depending on market conditions.
Expect $75-$200 monthly per $100,000 borrowed with less than 20% down. Exact cost depends on credit score and down payment size. It drops off automatically at 20% equity.
Sellers can't legally discriminate, but they often favor conventional in multiple offer situations. VA's longer timeline and stricter appraisals make some sellers nervous, especially on older homes.
First-time use with zero down is 2.3%. Subsequent use is 3.6%. Put down 5% and it drops to 1.65%. The fee finances into your loan amount in most cases.