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in Hawthorne, CA
Hawthorne sits near multiple military installations including El Segundo AFB and the LA Air Force Base. Veterans and active-duty service members shopping here often qualify for both conventional and VA financing.
The choice between these loans affects your down payment, monthly cost, and closing timeline. Most VA-eligible borrowers save thousands by using their benefit, but conventional loans still win in specific scenarios.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You'll need a 620 minimum credit score and typically 3-20% down depending on the loan program.
These mortgages work for any qualified borrower regardless of military service. Rates vary by borrower profile and market conditions, but conventional loans often price lower than VA when you put 20% down.
Private mortgage insurance applies when you finance more than 80% of the purchase price. PMI adds $50-$300 monthly depending on your down payment and credit score.
VA loans require zero down payment and no monthly mortgage insurance. The VA guarantee allows lenders to offer better terms than conventional loans for the same credit profile.
You'll pay a one-time funding fee ranging from 1.4% to 3.6% of the loan amount. First-time VA users with zero down pay 2.3%, which can be rolled into the loan balance.
VA loans require a Certificate of Eligibility proving your service history. Most veterans, active-duty members, and qualifying surviving spouses meet the service requirements.
The down payment gap is the biggest difference. VA borrowers keep their cash while conventional buyers need $15,000-$100,000+ down depending on purchase price.
Monthly costs favor VA loans across the board. No mortgage insurance plus lower rates typically save VA borrowers $200-$400 monthly compared to conventional loans with 5% down.
Property requirements differ significantly. VA appraisals flag issues conventional appraisals ignore, including peeling paint and missing handrails. Hawthorne's older housing stock sometimes needs minor repairs to pass VA standards.
Seller concessions work differently. VA allows sellers to pay all closing costs, while conventional loans cap seller credits at 3-9% depending on down payment size.
Use your VA benefit if you're eligible. The zero down payment and no PMI save most borrowers $30,000-$50,000 over the first five years compared to conventional financing.
Conventional loans make sense in three scenarios. First, you're buying a multi-unit property and already used your VA entitlement. Second, you're offering on a fixer-upper that won't pass VA inspection. Third, you have 20%+ down and exceptional credit scoring you a better conventional rate.
Many Hawthorne sellers accept VA offers without hesitation due to the area's military presence. Conventional financing doesn't provide a competitive edge here like it might in other markets.
Yes, if the condo complex is VA-approved. Many Hawthorne complexes maintain VA approval, but always verify before making an offer.
Not anymore. Most VA loans close in 21-30 days, matching conventional timelines when you have your Certificate of Eligibility ready.
Most VA lenders require 580-620 minimum. We access VA lenders approving borrowers at 580 with compensating factors like cash reserves.
Yes, if you receive VA disability compensation or you're a surviving spouse. All other VA borrowers pay the one-time fee.
Rarely makes sense. VA loans already have no PMI and competitive rates, so refinancing to conventional typically costs more than it saves.