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in La Habra Heights, CA
La Habra Heights sits on hillside terrain with larger lots and higher price points than neighboring communities. Both FHA and VA loans offer government backing, but they serve different borrowers with different terms.
Veterans get clear advantages with VA loans, but FHA works for anyone who qualifies. Your eligibility determines which path makes sense, not which loan sounds better on paper.
FHA loans require 3.5% down with credit scores as low as 580. You pay mortgage insurance for the life of the loan unless you put down 10% or more, which drops MIP to 11 years.
Loan limits in Los Angeles County max out at $766,550 for single-family homes. That covers many La Habra Heights properties, but the pricier hillside estates will need jumbo financing or larger down payments.
VA loans require zero down payment and no monthly mortgage insurance. Veterans pay a one-time funding fee between 1.4% and 3.6% of the loan amount, which can be rolled into the mortgage.
LA County VA loan limits hit $766,550 for full entitlement. Veterans with remaining entitlement can go higher, and those buying above the limit can still use VA with a down payment covering the difference.
The down payment gap is the biggest difference. FHA needs $26,829 minimum on a $766,550 purchase. VA needs zero. That same buyer keeps their cash for closing costs, reserves, or property improvements.
FHA charges 1.75% upfront MIP plus 0.55% annual MIP that stays for the loan's life. VA charges a 2.3% funding fee for first-time use with zero down, but no recurring monthly cost. On a 30-year loan, FHA's ongoing insurance adds up fast.
If you have VA eligibility, use it. The zero-down structure and lack of monthly insurance beats FHA in almost every scenario. You preserve cash and pay less over time.
Non-veterans default to FHA when conventional loans don't work. The 3.5% down beats conventional's typical 5-10%, and credit score requirements stay more flexible. Just plan for the permanent mortgage insurance unless you refinance later.
Yes, both programs work for hillside properties. Appraisers check site stability and access, which matters more in hillside areas, but approval depends on the specific property meeting program standards.
FHA typically requires 580 for 3.5% down. VA doesn't set a minimum score, but most lenders want 620 or higher for automatic underwriting approval.
VA charges 2.3% once for first use with zero down. FHA charges 1.75% upfront plus 0.55% annually forever. VA costs less over a typical 7-10 year ownership period.
Both programs require homes to meet safety and livability standards at purchase. Major repairs need completion before closing, or you use FHA 203(k) or VA renovation loan options.
FHA requires 3.5% down on the entire amount. VA lets you use benefits on the conforming portion and make a down payment on the difference with no monthly mortgage insurance.