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in La Puente, CA
La Puente buyers often qualify for both FHA and VA loans but don't realize how much money the wrong choice costs them. The difference in upfront fees and monthly payments can be $15,000+ over the loan's life.
FHA loans accept anyone with decent credit and 3.5% down. VA loans require military service but charge no down payment and no monthly mortgage insurance.
Most veterans should use VA — it's almost always cheaper. But if you've already used your VA entitlement or need a co-borrower who isn't your spouse, FHA might be your only option.
FHA loans require 3.5% down with credit scores as low as 580. You'll pay 1.75% upfront mortgage insurance premium plus 0.55%-0.85% annual MIP that lasts the loan's life on most purchases.
Credit scores between 580-620 still qualify, which helps La Puente buyers who don't have perfect credit. FHA accepts higher debt ratios than conventional loans — up to 50% in many cases.
The catch: you're stuck with mortgage insurance forever unless you refinance. On a $500,000 loan, that's $350+ per month you can't eliminate by reaching 20% equity.
VA loans require zero down and charge no monthly mortgage insurance ever. You pay a one-time funding fee of 2.15%-3.3% depending on down payment and whether it's your first VA loan.
Credit score minimums vary by lender but typically land around 580-620. More importantly, VA ignores debt ratio rules that kill conventional deals — we've closed VA loans at 60% DTI.
You need a Certificate of Eligibility proving military service. Active duty, veterans with honorable discharge, National Guard members with six years of service, and surviving spouses qualify.
The monthly payment difference is stark. A $500,000 FHA loan costs $350/month in mortgage insurance. The same VA loan pays zero monthly MI — you only paid the funding fee upfront.
Down payment: FHA needs $17,500 on that $500,000 purchase. VA needs $0. But VA's funding fee runs $10,750-$16,500 unless you're exempt due to disability.
Eligibility separates them completely. Anyone with a 580 credit score qualifies for FHA. VA requires military service documented by a COE — no exceptions.
If you're a veteran or active military, use VA unless you've exhausted your entitlement or need a non-spouse co-borrower. The monthly savings crush FHA even after paying the funding fee.
Choose FHA when you're not military-connected, need a co-borrower who isn't eligible for VA, or you've already used your full VA benefit on another property you still own.
Disabled veterans get the best deal — VA waives the funding fee entirely. That's zero down and zero monthly MI with no upfront funding cost.
No. You choose one loan type per purchase. If you're eligible for VA, you can't layer FHA benefits on top — and you wouldn't want to since VA is cheaper.
Both close in 21-30 days typically. VA appraisals sometimes take longer, but we manage timelines to hit the same schedule as FHA.
VA rates run 0.25%-0.5% lower than FHA on average. Rates vary by borrower profile and market conditions, but VA consistently prices better.
Yes if you're receiving VA disability compensation or you're a surviving spouse. Otherwise, the funding fee applies to all VA loans.
You can reuse VA benefits after selling your previous VA-financed home. If you still own it, you might have partial entitlement left depending on the loan amount.
VA if you're eligible — the condo must be VA-approved but most established complexes are. FHA has similar condo approval requirements.