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in El Monte, CA
El Monte buyers often choose between conventional financing and VA loans if they qualify. Your military service status determines whether VA becomes your strongest play.
Most veterans who qualify for VA loans save thousands by skipping PMI and down payments. Conventional loans work better for buyers who don't qualify for VA or need flexibility on property type.
Conventional loans require 3-20% down and strong credit to avoid PMI. You need 620 minimum credit, but 740+ gets the best rates.
These loans work for any property type—primary homes, investment properties, second homes. Lenders price them based on your credit score, down payment, and debt ratios.
VA loans let eligible veterans and active-duty service members buy with zero down. No PMI ever, regardless of down payment amount.
You pay a one-time funding fee (1.4-3.6% of loan amount) unless you're disabled. Credit requirements are more forgiving than conventional—most lenders approve at 580-620.
The biggest gap is down payment and PMI. VA eliminates both, while conventional requires 3% minimum and PMI until you hit 20% equity.
VA appraisals scrutinize property condition harder than conventional. The VA appraiser flags health and safety issues that might not matter for conventional financing.
Conventional loans offer faster closes in competitive markets. Some El Monte sellers prefer them over VA because of stricter appraisal standards.
If you have a Certificate of Eligibility, VA wins on cost. Skipping the down payment and PMI saves $15,000-$30,000+ on a typical El Monte purchase.
Choose conventional if you're not military-eligible or buying a property that won't pass VA appraisal standards. Investment properties require conventional—VA only covers primary residences.
Some veterans still use conventional when buying fixer-uppers or making competing offers. The funding fee and strict appraisals can outweigh VA's down payment advantage in certain deals.
Yes, veterans can choose conventional financing. Some do this for fixer-uppers that won't pass VA appraisal or to strengthen offers in competitive situations.
Not usually. The funding fee is one-time (1.4-3.6%), while PMI costs 0.5-1% annually until you hit 20% equity. VA saves money over time.
Conventional loans typically close 3-5 days faster. VA appraisals take longer and require more property repairs before funding.
Most VA lenders approve at 580-620 credit scores. Conventional loans need 620 minimum, and rates suffer below 740.
Some do in multiple-offer situations. VA appraisals are stricter, and sellers worry about deals falling apart over property condition issues.