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in Downey, CA
Downey sits in a competitive Los Angeles County market where every financing advantage counts. Military buyers here face a key choice: use VA benefits for zero down or compete with conventional financing.
Both loans work in Downey, but they serve different priorities. VA wins on upfront costs while conventional offers flexibility that matters in bidding wars.
Conventional loans require 3-20% down depending on your credit and debt ratios. Most Downey buyers put down 5-10% to avoid high PMI costs while keeping cash for repairs or reserves.
You need 620+ credit to qualify, though 680+ gets better rates. PMI drops off once you hit 20% equity, which happens faster in appreciating LA County neighborhoods.
Sellers in Downey prefer conventional offers because appraisals use standard guidelines. No VA funding fee or occupancy requirements means fewer closing surprises.
VA loans put zero down and charge no PMI ever. The VA funding fee runs 2.15-3.3% but rolls into your loan amount, so you close with minimal cash.
Credit requirements flex lower than conventional, often approving 580+ scores. Debt ratios stretch to 50-55% where conventional caps at 45%, helpful in pricey Downey.
You must occupy the home as primary residence. VA appraisals run stricter than conventional, sometimes flagging roof or paint issues that delay closing.
Upfront cost splits these loans hard. VA lets you buy with $5,000-8,000 in closing costs while conventional needs $30,000-50,000 down plus costs for the same Downey home.
Monthly payments favor VA when you finance under 80% loan-to-value. Above that, conventional carries PMI that adds $150-300 monthly until you refi or hit 20% equity.
Closing speed matters in multiple offer scenarios. Conventional takes 21-25 days in Downey while VA runs 28-35 days due to stricter appraisal requirements and VA processing.
Use VA if you qualify and plan to live in the home. Saving $40,000 in down payment matters more than a slightly longer closing in most Downey purchases.
Switch to conventional when competing against multiple offers on turnkey homes. Sellers pick the cleaner appraisal process when offers land within $5,000 of each other.
Some military buyers use both: VA for their first Downey home, then conventional when upgrading since VA entitlement stays tied to that first property until sold.
VA requires homes to be move-in ready with no major safety or structural issues. Most Downey fixers need conventional or FHA 203k rehab loans instead.
Not automatically, but they prefer conventional when offers are close. VA appraisals take longer and flag more repair items that can kill deals.
VA costs less with zero down since you avoid PMI. Conventional costs less if you put 20%+ down and skip mortgage insurance entirely.
Yes, if your down payment cash arrives or the appraisal flags issues. Most lenders can pivot loans within 5-7 days if rates haven't moved much.
Only if the complex is VA-approved, which many older Downey condos are not. Check VA's approved condo list before writing offers on attached housing.