Loading
in La Mirada, CA
La Mirada homebuyers with military service face a clear fork: conventional financing or the VA benefit. Most veterans assume VA is always the better choice, but that's not true for every deal.
The right loan depends on your down payment capacity, credit profile, and the property type you're targeting. Let's break down what actually matters when choosing between these two options in Los Angeles County.
Conventional loans require 3-20% down depending on the property and your borrower profile. You'll need 620+ credit for most programs, though better rates kick in above 740.
These loans work for any property type and let you buy investment properties with 15-25% down. PMI applies on down payments under 20%, but it drops off once you hit 78% loan-to-value through appreciation or paydown.
La Mirada buyers use conventional loans when they're purchasing multi-family properties, have strong credit, or want to avoid VA funding fees. Rates vary by borrower profile and market conditions, but conventional often beats VA for borrowers putting 20%+ down.
VA loans require zero down payment and no monthly mortgage insurance. You pay a one-time funding fee (2.3% for first use, 3.6% for subsequent use) that rolls into the loan amount.
Credit requirements are more flexible than conventional—we've closed VA loans with scores in the low 600s. The property must be your primary residence and meet VA appraisal standards, which can be stricter than conventional.
Veterans and active-duty service members in La Mirada use VA loans to preserve cash and avoid PMI. The funding fee hurts, but no down payment requirement often makes this the stronger play for first-time buyers.
The biggest split is upfront cash versus long-term costs. VA loans require almost nothing down but charge a funding fee. Conventional loans need 3-20% down but let you cancel PMI and work for any property type.
VA appraisals protect buyers but kill deals conventional appraisals would pass. I've seen VA appraisers flag peeling paint and minor foundation cracks that wouldn't stop a conventional loan. Sellers know this and sometimes prefer conventional offers.
Credit flexibility matters in La Mirada where home prices push debt-to-income ratios. VA lenders allow higher DTI ratios and overlook credit issues that would sink a conventional application. But you give up flexibility on property type and investment purchases.
Use VA if you're a first-time buyer, have limited savings, or need credit flexibility. The zero down feature and no PMI usually outweigh the funding fee over a 5-7 year hold period.
Go conventional if you're buying a multi-family property, have 20%+ to put down, or the property won't pass VA appraisal standards. Also consider conventional if you're making multiple offers in a competitive market—some La Mirada sellers won't even counter VA offers due to appraisal concerns.
Run both scenarios with actual numbers. I've seen deals where the funding fee pushes monthly payments higher than conventional with PMI, especially for repeat VA users facing the 3.6% fee. Your specific situation determines the winner.
Yes, VA loans work for 2-4 unit properties if you occupy one unit. You still get zero down and no PMI, which makes this a strong play for house hacking.
Usually yes for first-time users at 2.3%. Repeat users at 3.6% should compare total costs against conventional with 5% down and PMI.
VA appraisals are stricter and can force sellers to make repairs. Some would rather take a conventional offer even at the same price.
Yes, PMI automatically cancels at 78% loan-to-value. You can request removal at 80% LTV with an appraisal showing sufficient appreciation.
Rates vary by borrower profile and market conditions. VA often has lower rates, but the funding fee changes the effective cost comparison.
Conventional requires 620 minimum, best rates at 740+. VA is more flexible—we've closed loans in the low 600s for qualified veterans.