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in La Puente, CA
La Puente buyers with military service face a key decision: use your VA benefit or go conventional. The right choice depends on your down payment, credit profile, and how long you plan to stay.
Most veterans I work with assume VA is always better. It's not. Conventional loans beat VA in specific situations, especially if you have strong credit and cash reserves.
Conventional loans require 3% down minimum, though you'll pay PMI until you hit 20% equity. Rates vary by borrower profile and market conditions, but strong credit gets you the best pricing.
You need 620 credit minimum, though 740+ unlocks top-tier pricing. No upfront funding fee. Once you reach 20% equity, PMI drops off automatically — a permanent monthly savings.
VA loans let eligible veterans buy with zero down. No PMI ever. You pay a one-time funding fee instead — 2.3% for first use with zero down, or 1.65% with 5% down.
Credit standards are flexible, though most lenders want 580 minimum. The big win: you can finance 100% and still avoid monthly mortgage insurance. Sellers can pay all your closing costs too.
The funding fee vs PMI math matters. Put 5% down on VA and you pay 1.65% once. Put 5% down conventional and you pay PMI monthly until you hit 20% equity — often $150-250/month for years.
VA appraisals are stricter. Peeling paint, missing handrails, roof issues — things conventional appraisers note but don't flag as deal-killers. VA requires repairs before closing, which kills some deals.
Use VA if you're putting down less than 10%. The funding fee costs less than years of PMI, and zero down preserves your cash for repairs or emergencies.
Go conventional if you have 15-20% down and the property needs work. You'll avoid VA appraisal headaches and drop PMI faster. Also choose conventional if you're buying a fixer — VA won't touch properties needing significant repairs.
Yes, your VA benefit restores after you sell and pay off the previous VA loan. You can also use it multiple times simultaneously if you have remaining entitlement.
VA usually wins with zero or low down payment due to no PMI. With 20%+ down, conventional and VA payments are similar since neither has mortgage insurance.
Some do because VA appraisals are stricter and can require repairs. A strong offer with fast closing often matters more than loan type.
Conventional requires 620 minimum, 740+ for best rates. VA lenders typically accept 580-600, though some go lower with compensating factors.
Veterans with service-connected disabilities are exempt. Otherwise, putting 10%+ down reduces the fee to 1.4%, but you still pay it.