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in Diamond Bar, CA
Both FHA and VA loans open doors to homeownership in Diamond Bar with less money down than conventional mortgages. The right choice depends on your military status and how much you can put down.
FHA loans work for any qualified buyer willing to pay mortgage insurance. VA loans serve veterans and active military exclusively, with zero down payment and no monthly insurance premium.
FHA loans let you buy in Diamond Bar with just 3.5% down if your credit score hits 580. You can go as low as 500 with 10% down, though most lenders set their own minimums higher.
You'll pay two types of mortgage insurance: 1.75% upfront rolled into the loan, plus monthly premiums for the life of the loan on most purchases. This insurance protects the lender if you default, allowing them to approve borrowers with less equity and lower credit.
VA loans require zero down payment for eligible veterans, active-duty service members, and qualifying surviving spouses. You need a Certificate of Eligibility from the VA proving your service history.
Instead of monthly mortgage insurance, you pay a one-time funding fee between 1.4% and 3.6% of the loan amount, which you can roll into the mortgage. Disabled veterans often qualify for a funding fee waiver, eliminating this cost entirely.
The biggest split is eligibility: VA loans demand military service while FHA accepts any buyer. Monthly costs differ sharply too—FHA charges ongoing mortgage insurance while VA only hits you with an upfront funding fee.
Down payment separates them next. VA lets you finance 100% of the purchase with zero down. FHA needs 3.5% minimum, which in Diamond Bar's market means several thousand dollars out of pocket.
If you qualify for a VA loan, take it. Zero down and no monthly insurance beat FHA on almost every deal. The only exception: if you're buying well below your budget and want to avoid the funding fee by putting money down anyway.
FHA makes sense when VA isn't an option due to military service requirements. It gets civilians into Diamond Bar homes with minimal down payment and credit flexibility conventional loans won't match.
Yes. Your VA entitlement restores after you sell and pay off the previous VA loan. You can also use remaining entitlement for a second property in some cases.
Only if you put down 10% or more at purchase—then it drops after 11 years. With 3.5% down, you pay insurance for the full loan term.
Both require appraisals checking safety and structural soundness. VA appraisers tend to flag more minor issues, but neither loan works for fixer-uppers.
Yes, if you gain VA eligibility or didn't know about it initially. An IRRRL streamline refinance can drop your rate without a new appraisal.
Most sellers accept both equally. VA's appraisal repair requirements occasionally cause concern, but strong offers overcome this in competitive markets.