Loading
in Duarte, CA
Both FHA and VA loans offer government backing, but they serve different borrowers with different advantages. FHA works for anyone meeting credit and income requirements, while VA exclusively serves military families.
In Duarte's established neighborhoods, both programs handle older housing stock well. The choice comes down to your eligibility and how much cash you can put down.
FHA loans require just 3.5% down with a 580 credit score, or 10% down if your score is 500-579. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that typically run 0.55%-0.85% of your loan balance.
These loans accept higher debt-to-income ratios than conventional financing, often up to 50% with compensating factors. FHA works well for first-time buyers or anyone rebuilding credit after financial setbacks.
VA loans require zero down payment for eligible veterans, active-duty service members, and qualifying surviving spouses. There's no monthly mortgage insurance, just a one-time funding fee that ranges from 1.4% to 3.6% depending on down payment and prior use.
Lenders typically want 620+ credit, though some approve lower scores. VA loans often accept higher debt ratios than FHA and don't require mortgage insurance, making monthly payments significantly lower than comparable FHA financing.
The biggest split is eligibility: VA serves military families only, while FHA accepts anyone. VA eliminates monthly mortgage insurance, which saves $150-$300 monthly on typical Duarte home purchases compared to FHA.
Down payment separates them too. FHA needs at least 3.5% saved, VA needs nothing. If you're eligible for VA and buying a $650,000 home, that's saving $22,750 upfront plus ongoing insurance savings.
If you're eligible for VA, use it. The zero down payment and no mortgage insurance make it superior to FHA in almost every scenario. The only exception is if you've exhausted your VA entitlement on another property.
If you're not military-connected, FHA remains your best low-down-payment option. The 3.5% minimum down beats conventional 5-10% requirements, and the flexible credit standards help borrowers conventional lenders decline.
No. You choose one loan type per purchase. If you're VA-eligible, using VA instead of FHA saves significant money through eliminated mortgage insurance.
VA loans typically price 0.25%-0.50% lower than FHA. Rates vary by borrower profile and market conditions, but VA consistently offers better pricing.
Yes, both handle properties built in any era. The home must meet basic safety and structural standards during appraisal regardless of age.
FHA officially accepts 580 credit scores. VA has no published minimum, but most lenders want 620+, though some approve lower scores.
Only if you put 10%+ down and wait 11 years. With less than 10% down, FHA mortgage insurance lasts the entire loan term.
First-time VA users pay 2.15% with zero down versus FHA's 1.75%, but VA saves far more by eliminating monthly mortgage insurance.