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in Duarte, CA
Duarte's quiet neighborhoods attract both civilian buyers and military families from nearby bases. The choice between conventional and VA financing often comes down to your service history and down payment reserves.
Veterans have earned a powerful benefit. But conventional loans sometimes make more sense even for eligible service members — especially in competitive Los Angeles County markets.
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac. You'll need at least 3% down for a primary residence, 620+ credit, and documented income through W-2s or tax returns.
These loans shine when you're buying a multi-unit property or want to avoid VA funding fees. They also close faster since appraisers don't flag paint chips and minor repairs that trigger VA conditions.
PMI drops off automatically at 78% loan-to-value on conventional mortgages. If you're putting 20% down, you skip mortgage insurance entirely — a major advantage over the VA funding fee that never disappears.
VA loans let eligible veterans and active-duty service members buy with zero down payment. No monthly mortgage insurance ever, regardless of down payment size — just a one-time funding fee that's typically 2.3% for first-time use.
Lenders can approve VA loans with credit scores as low as 580, though most want 620+. The appraisal is stricter than conventional — inspectors flag peeling paint, missing handrails, and cosmetic issues that sellers must fix before closing.
You can use your VA benefit repeatedly. Pay off the first loan and your entitlement resets for the next purchase, making this ideal for military families who relocate frequently.
The biggest split is upfront cost versus long-term flexibility. VA requires nothing down but charges a funding fee you'll carry for 30 years. Conventional demands cash upfront but lets you drop PMI once you hit 78% LTV.
Property condition matters more with VA. That 1960s Duarte fixer with original windows might sail through conventional underwriting but get flagged for $15K in VA-required repairs before you can close.
Occupancy rules differ sharply. VA loans require you to occupy the home within 60 days and live there at least one year. Conventional loans finance second homes and pure investment properties without occupancy requirements.
Use your VA benefit if you're buying a primary residence with limited cash reserves. The zero-down advantage outweighs the funding fee when you're preserving liquidity for emergencies or home improvements.
Go conventional if you're buying a duplex to house-hack, purchasing a second home, or the property needs work. You'll also want conventional if the seller is fielding multiple offers — VA's appraisal requirements spook some sellers in competitive situations.
Veterans with 10%+ down should run both scenarios. Sometimes the lower rates on conventional loans offset the funding fee savings, especially if you plan to sell within seven years before the funding fee advantage compounds.
Yes, if you occupy one unit as your primary residence. VA loans finance 2-4 unit properties with zero down as long as you live in one unit for at least a year.
Sometimes. If you have 10%+ down and excellent credit, conventional rates may be low enough to offset the funding fee over a 7-10 year hold period.
Most lenders want 620+ for both programs. VA guidelines technically allow 580, but few lenders go that low in practice.
Some worry about appraisal repairs and longer timelines. A strong offer with quick close dates and minimal contingencies usually overcomes VA hesitation.
Yes, if you receive VA disability compensation or are a surviving spouse. Otherwise, the fee applies even with money down — though it drops to 1.65% with 5%+ down.