Loading
in Diamond Bar, CA
Diamond Bar's strong military community makes VA loans common here, but conventional financing often gets overlooked. Both work well in this market, but the right choice depends on your service record and down payment capacity.
Most Diamond Bar buyers think VA loans always win because of zero down. That's wrong. Conventional loans beat VA in speed and seller acceptance when you have 10% down or more.
Conventional loans require 3-20% down and a 620+ credit score for most programs. You'll pay PMI with less than 20% down, but it drops off once you hit 78% loan-to-value.
Diamond Bar sellers prefer conventional buyers because these loans appraise more flexibly than VA. No funding fee means lower closing costs if you're putting 20% down. Rates run 0.125-0.25% lower than VA for borrowers with strong credit.
VA loans need zero down and allow 580 credit scores with most lenders. You pay a 2.3% funding fee on first use (1.4% with 5%+ down), but disabled veterans get it waived.
No PMI ever, regardless of down payment. VA appraisals are stricter—they flag foundation issues and roof conditions that conventional appraisers might pass. Diamond Bar's older housing stock sometimes triggers repair requirements that kill deals.
Down payment separates these loans first. VA beats conventional if you're putting down less than 5%—no PMI saves $200-400 monthly on a $700k Diamond Bar home. Above 10% down, conventional costs less because you avoid the funding fee.
Appraisal timelines matter in Diamond Bar's competitive pockets. Conventional appraisals take 7-10 days; VA runs 14-21 days. Sellers picking between equal offers choose conventional 80% of the time. Credit flexibility favors VA—they'll approve 580 scores that conventional lenders reject outright.
Choose VA if you're eligible and putting down less than 10%. The funding fee hurts, but no PMI saves more over time. Just know you'll lose some bidding wars to conventional buyers, especially on homes needing minor repairs.
Go conventional if you have 10%+ down or you're buying in a multiple-offer situation. You'll pay PMI temporarily, but faster closing and looser appraisals win deals. Non-eligible buyers have no choice—conventional is your only conforming option in Diamond Bar.
Only if the HOA is VA-approved. About 60% of Diamond Bar condos qualify, but newer complexes often haven't completed the approval process yet.
Yes, but it drops to 0.5% on VA-to-VA refinances. You can roll it into the loan amount instead of paying upfront.
Not automatically, but they'll favor conventional in multiple-offer scenarios. Offering full asking or above helps offset the appraisal risk.
Yes, though few programs exist in Los Angeles County. The VA allows seller credits up to 4% toward closing costs as an alternative.
Conventional rates run 0.125-0.25% lower for 740+ credit scores. VA rates stay flatter across credit tiers, helping borrowers with 620-680 scores.