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in La Canada Flintridge, CA
La Cañada Flintridge's hillside homes and established neighborhoods attract both first-time buyers and veterans looking to settle in Los Angeles County. Government-backed loans offer pathways into this market with less cash down than conventional financing requires.
FHA and VA loans both reduce upfront barriers, but they serve different borrowers. Understanding which program you qualify for—and which saves you more money—determines your buying power here.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums between 0.55% and 1.05% depending on your down payment and loan amount.
These loans work for anyone meeting basic credit and income standards. Debt-to-income ratios can stretch to 50% with compensating factors, making FHA accessible to W-2 earners with student loans or car payments.
VA loans require zero down payment for eligible veterans and active-duty service members. You'll pay a one-time funding fee (typically 2.3% for first use, waived for disabled veterans) but no monthly mortgage insurance at any loan-to-value ratio.
Lenders typically want 620+ credit scores, though the VA itself sets no minimum. These loans allow 100% financing up to conforming loan limits without the monthly insurance drag that comes with FHA or conventional high-LTV loans.
The monthly cost difference matters more than down payment savings. On a $900,000 home, FHA's mortgage insurance adds roughly $550/month that VA borrowers avoid entirely. Over seven years, that's $46,200 in payments VA borrowers keep.
Eligibility separates these programs completely. Veterans with service-connected disabilities get the best deal available—zero down, no funding fee, no monthly insurance. Non-veterans default to FHA if they can't meet conventional loan requirements.
If you qualify for VA benefits, use them. The monthly savings dwarf FHA's slightly lower credit score requirement. Veterans choosing FHA over VA are leaving thousands of dollars on the table unless their credit sits below 600.
Non-veterans comparing FHA to conventional should run both scenarios. If you have 10-15% down and 680+ credit, conventional often beats FHA once you factor in lower rates and removable mortgage insurance. FHA shines when you're stretching to buy with minimal cash and sub-680 credit.
Both programs cap at $1,149,825 in LA County for 2024. Homes above that price require conventional or jumbo financing.
You still need cash for appraisal, inspection, and prepaid costs—typically $8,000-12,000. Some sellers cover closing costs, but count on bringing something.
They wouldn't if eligible for both. FHA exists for non-veterans who need lower down payments and flexible credit requirements.
Only if you put down 10% or more at purchase. With 3.5% down, insurance stays for the loan's life unless you refinance.
Yes. FHA accepts any qualified co-borrower. VA requires veteran borrowers but allows non-veteran spouses to co-sign with some restrictions.