Loading
in La Habra Heights, CA
La Habra Heights buyers choosing between FHA and VA loans face a clear trade-off: modest down payment versus zero down. Both programs price at 5.875% for a 740 FICO buyer on a primary residence. The decision hinges on military eligibility and available cash.
FHA requires 3.5% down with a 580+ FICO floor. VA requires zero down for eligible veterans and active-duty service members. Both hit the 2026 FHA and VA loan limits of $1,249,125 in Los Angeles County.
FHA at 5.875% opens the door with just 3.5% down on a primary residence. The upfront mortgage insurance premium is 1.75% of the loan amount, rolled into the balance.
If you put down less than 10%, MIP stays for the life of the loan. FHA underwriting accepts credit scores as low as 580 and is flexible on income documentation.
VA at 5.875% requires zero down for eligible veterans, active-duty members, and surviving spouses with a Certificate of Eligibility. The funding fee replaces traditional PMI: 2.15% on first use with zero down.
That fee rolls into the loan balance. If you have a 10% or higher VA disability rating, the funding fee is waived entirely.
The down-payment gap is the headline difference. FHA requires 3.5% down; VA requires nothing. Both loans price identically at 5.875% for a 740 FICO buyer.
FHA's upfront MIP of 1.75% rolls into the loan and stays for life if you put down under 10%. VA's funding fee of 2.15% also rolls in but is waived entirely if you have a 10% or higher disability rating.
FHA is the right choice if you have no military service or limited eligibility. You're a good fit if you have 3.5% to 5% saved and want to close quickly. FHA's 580 FICO floor makes it accessible for self-employed buyers.
VA is the right choice if you're an eligible veteran, active-duty member, or surviving spouse. Zero down means you preserve cash for closing costs and repairs. A 10% or higher disability rating waives the funding fee entirely.
Both are identical at $4,437 principal and interest at 5.875%. The real difference is the down payment. FHA requires 3.5% down; VA requires zero.
Yes. You must have a valid COE from the VA showing you're an eligible veteran, active-duty member, or surviving spouse. The VA issues COEs online in minutes.
Yes, but only if you put down 10% or more. At 10%+ down, MIP cancels after 11 years. Below 10% down, MIP stays for the life of the loan.
Yes. If you have a 10% or higher VA disability rating, the funding fee is waived entirely. Otherwise, the 2.15% fee rolls into your loan balance.
VA wins if you're eligible because zero down preserves cash and the rate is identical. FHA wins if you have no military service. Both hit the $1,249,125 limit.