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in Glendale, CA
Both FHA and VA loans help Glendale buyers who can't put down 20 percent. FHA works for anyone with decent credit. VA requires military service but offers better terms.
Most Glendale buyers choose based on eligibility first. If you qualify for VA, it usually beats FHA on cost and flexibility. If not, FHA gives you a solid path to homeownership with just 3.5 percent down.
FHA loans let you buy with 3.5 percent down if your credit score hits 580. You pay mortgage insurance upfront and monthly, but lenders approve debt ratios up to 50 percent in many cases.
This program works for first-time buyers and repeat purchasers in Glendale. You can finance a primary residence up to $1,149,825 in Los Angeles County. Sellers can contribute up to 6 percent toward your closing costs.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a funding fee between 1.4 and 3.6 percent unless you have a service-connected disability. Rates typically run 0.25 to 0.5 percent lower than FHA.
Eligible veterans and active-duty service members get the best terms in residential lending. VA allows debt ratios above 50 percent with compensating factors. The program caps how much lenders can charge in fees, which saves you money at closing.
VA loans cost less monthly because you skip mortgage insurance. On a $750,000 Glendale home, FHA mortgage insurance adds about $450 per month. VA eliminates that entirely, though you pay a one-time funding fee.
FHA accepts anyone who meets credit and income standards. VA restricts eligibility to military service members, veterans, and certain surviving spouses. If you qualify for VA, you save thousands annually on a typical Glendale purchase.
Choose VA if you qualify. The savings on mortgage insurance and lower rates make it the strongest government program. Most veterans who pick FHA simply don't know they have VA eligibility.
Pick FHA if you lack military service and need a low down payment option. It costs more than VA but less than conventional loans with 5 percent down. FHA also works well if you need seller concessions to cover closing costs.
Both programs approve condos if the building meets FHA or VA requirements. The condo complex needs to be on the approved list, which your broker verifies during pre-approval.
VA loans typically offer rates 0.25 to 0.5 percent below FHA. Rates vary by borrower profile and market conditions, but VA consistently prices better.
Only if you put down 10 percent or more, then it drops after 11 years. With 3.5 percent down, you pay mortgage insurance for the entire loan term.
Veterans with a service-connected disability rating skip the funding fee entirely. Otherwise, you pay between 1.4 and 3.6 percent based on down payment and prior VA loan use.
FHA officially allows 580 credit scores with 3.5 percent down. VA has no official minimum, but most lenders want 620 or higher for approval.
No. Both FHA and VA require you to occupy the home as your primary residence. You need a conventional loan for investment purchases.