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in El Monte, CA
Both FHA and VA loans help El Monte buyers get into homes with less cash upfront than conventional financing. The right choice depends entirely on whether you qualify for VA benefits.
FHA works for anyone who meets income and credit standards. VA is reserved for military members but offers stronger terms if you're eligible.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% to 0.85% for most loans.
These loans work well for first-time buyers and anyone without military service. The downside is ongoing mortgage insurance that sticks around for the loan's life on most purchases.
VA loans offer zero down payment for eligible veterans and service members. You pay a one-time funding fee of 2.15% to 3.3% depending on down payment and service type, but no ongoing mortgage insurance.
Credit requirements flex lower than FHA in practice. Many lenders approve scores in the 580s, though individual overlays vary by lender.
The cost structure separates these programs. FHA charges less upfront but bleeds monthly through mortgage insurance premiums. VA hits harder at closing but saves hundreds monthly by skipping insurance.
On a $550,000 El Monte home, FHA needs $19,250 down plus $9,625 upfront premium. VA needs nothing down but charges $11,825 funding fee. FHA then adds $330 monthly for insurance while VA adds zero.
If you qualify for VA benefits, use them. The zero-down structure and lack of mortgage insurance beat FHA in almost every scenario. Even with the funding fee, you save thousands over the loan term.
FHA makes sense only when VA isn't an option. It's the strongest low-down-payment program for non-military buyers in El Monte, especially those building credit or lacking big cash reserves.
Yes, your VA entitlement restores after you sell and pay off the loan. You can reuse benefits multiple times throughout your life.
Only if you put down 10% or more at purchase. Then it cancels after 11 years. Otherwise it stays for the loan's full term.
VA appraisals check more boxes for safety and habitability. FHA also has standards but VA inspectors flag more items in older El Monte homes.
Most programs don't stack with VA since you're already at zero down. FHA pairs better with local assistance programs requiring borrower contribution.
Yes. FHA caps seller concessions at 6% of purchase price. VA allows up to 4% in concessions from the seller.