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in Industry, CA
Most Industry buyers weigh conventional loans against VA loans if they're eligible. The choice comes down to down payment size, funding fees, and long-term cost.
VA loans waive the down payment entirely. Conventional loans require at least 3% down but skip the VA funding fee and offer more flexible property types.
Conventional loans work for any borrower who meets credit and income standards. You need a 620 credit score minimum, though 740+ gets the best rates.
Put down less than 20% and you'll pay PMI until you hit 20% equity. Rates vary by borrower profile and market conditions, but approval hinges on debt ratios and reserve requirements.
VA loans require military service—active duty, veteran status, or qualifying surviving spouse. You skip the down payment entirely and avoid monthly PMI.
The VA funding fee runs 2.15% to 3.3% depending on service type and down payment. Disabled veterans pay zero funding fee, which saves thousands at closing.
VA loans beat conventional on upfront cash. You avoid the down payment and skip PMI, though the funding fee offsets some savings.
Conventional loans offer more property flexibility. VA won't approve investment properties or some condo projects that conventional lenders accept without issue.
Use VA if you qualify and plan to live in the property. The zero down requirement and no PMI save money even after the funding fee.
Choose conventional if you're buying investment property, a condo that VA won't approve, or you have 20% down and want to avoid all add-on fees.
No. VA requires owner occupancy and won't approve investment properties or condos without VA approval. Conventional loans accept both.
VA typically costs less monthly because you avoid PMI. Conventional requires PMI below 20% down, adding $100-300 per month.
No. Conventional needs 620 minimum, VA often approves at 580. Both reward higher scores with better rates.
Yes. VA Interest Rate Reduction Refinance Loans let you switch from conventional if you qualify for VA benefits.
Conventional usually closes in 30 days. VA takes 35-45 days due to appraisal requirements and military verification.