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in Irwindale, CA
Both FHA and VA loans help buyers in Irwindale access affordable financing with government backing. The right choice depends entirely on your military service history and financial profile.
FHA loans work for any qualified buyer with decent credit. VA loans require military service but offer terms that typically beat FHA across the board.
FHA loans require just 3.5% down with a credit score as low as 580. You'll pay both upfront and monthly mortgage insurance for the life of the loan unless you refinance.
These loans accept higher debt ratios than conventional mortgages. Sellers in Irwindale know FHA loans close reliably, which helps in competitive situations.
The upfront mortgage insurance premium runs 1.75% of your loan amount. Monthly premiums range from 0.45% to 1.05% annually depending on your down payment and loan term.
VA loans require zero down payment and charge no monthly mortgage insurance. You'll pay a one-time funding fee that ranges from 1.4% to 3.6% based on service type and down payment.
Credit score minimums vary by lender, but most approve veterans with 620 or higher. VA loans allow 100% financing on properties up to the conforming loan limit with no private mortgage insurance.
Disabled veterans often qualify for funding fee exemptions. VA loans also cap what lenders can charge for closing costs, reducing upfront expenses.
The biggest split is eligibility. VA loans require military service with a valid Certificate of Eligibility. FHA accepts any borrower who meets credit and income standards.
Monthly costs favor VA loans heavily. A $400,000 FHA loan carries roughly $280 monthly in mortgage insurance. The same VA loan has zero monthly insurance and often a lower rate.
Down payment rules differ dramatically. FHA needs 3.5% minimum while VA allows zero down. On a typical Irwindale home, that's $14,000 saved upfront with VA financing.
If you qualify for VA benefits, use them. The savings on monthly insurance and down payment dwarf any advantage FHA offers. Veterans choosing FHA instead leave thousands on the table.
FHA makes sense only when VA isn't available. It works well for first-time buyers in Irwindale who need flexible credit standards and can handle the insurance costs.
Some buyers combine programs across multiple properties. Use your VA benefit on a primary residence, then FHA for an investment property later if needed.
Yes. You can restore your entitlement after selling or pay off the previous VA loan. Many veterans use the benefit multiple times throughout their lives.
No. Lenders approve scores as low as 580 with 3.5% down. Scores between 500-579 need 10% down but still qualify.
Both close in similar timeframes, typically 30-45 days. FHA appraisals sometimes require extra repairs that can delay closing slightly.
Veterans with service-connected disabilities are exempt. Otherwise, you'll pay the fee but can roll it into your loan amount.
Both are widely accepted. VA loans sometimes face stigma over appraisal requirements, but experienced agents know both close reliably.