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in Gardena, CA
Both FHA and VA loans help buyers stretch into homeownership with less cash upfront. The right choice depends on whether you qualify for VA benefits and how much you want to minimize closing costs.
FHA works for anyone with decent credit. VA requires military service but offers the best terms in lending. Most Gardena buyers choose based on eligibility, not preference.
FHA lets you put down 3.5% with credit as low as 580. You'll pay mortgage insurance for the loan's life, which adds $150-300 monthly on a typical Gardena home.
Debt-to-income can stretch to 50% with strong compensating factors. Sellers can contribute up to 6% toward closing costs. Gift funds cover your entire down payment if needed.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee (1.4-3.6% of loan amount) that rolls into the mortgage.
Sellers can pay all your closing costs. Credit standards stay flexible, often accepting scores in the 580-600 range. VA doesn't set maximum debt ratios, leaving approval to the lender's discretion.
VA beats FHA on monthly cost every time. A $600K Gardena home costs $200-250 less per month with VA because you skip mortgage insurance. That's $3,000 yearly in your pocket.
FHA requires 3.5% down where VA needs nothing. But FHA's upfront mortgage insurance (1.75%) plus lifetime monthly premiums often cost more than VA's one-time funding fee. The math favors VA heavily if you qualify.
If you served and have a Certificate of Eligibility, VA wins on every financial metric. Lower monthly cost, zero down, better long-term savings. Only choose FHA if you don't qualify for VA.
FHA makes sense for non-military buyers who can't hit conventional's 5% down or 620 credit minimum. First-time buyers in Gardena use FHA when VA isn't an option, not as a first choice among government loans.
No. You pick one loan per property. If you qualify for VA, use it—the savings beat FHA every scenario.
VA typically accepts lower scores and worse credit history. Both go down to 580, but VA lenders show more flexibility on past issues.
Sellers don't care much either way. Both are government-backed and close reliably. VA's appraisal can be stricter on property condition.
That's exactly what VA is built for. Zero down, seller pays closing costs, you bring minimal cash to close.
FHA needs 3.5% down plus upfront insurance. VA needs nothing down but charges a funding fee. VA usually costs less at closing.