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in La Verne, CA
Both FHA and VA loans help La Verne buyers with limited savings get into a home. The big difference: VA loans are exclusive to military borrowers and offer better terms.
FHA loans work for anyone who qualifies credit-wise. VA loans require military service but eliminate the down payment and monthly mortgage insurance entirely.
FHA loans let you put down just 3.5% with a credit score as low as 580. Most La Verne buyers need around $20,000-$30,000 total to close on a typical home.
You'll pay an upfront mortgage insurance premium of 1.75% at closing, plus monthly insurance ranging from 0.45% to 1.05% annually. That insurance stays for the life of most FHA loans.
Credit flexibility is FHA's strength. Lenders approve borrowers two years after bankruptcy or foreclosure, and debt ratios can stretch higher than conventional limits.
VA loans require zero down payment if you have valid military service. You can finance 100% of a home's purchase price in La Verne with no monthly mortgage insurance.
Instead of mortgage insurance, you pay a one-time funding fee between 1.4% and 3.6% depending on service type and whether it's your first VA loan. Disabled veterans often get this waived completely.
VA underwriting focuses on residual income rather than just debt ratios. Lenders verify you have enough cash left after all debts to cover living expenses comfortably.
The down payment gap is massive. FHA needs 3.5% minimum while VA accepts zero. On a $600,000 La Verne home, that's $21,000 versus nothing out of pocket.
Monthly costs differ significantly too. FHA charges ongoing mortgage insurance that adds $200-$400 monthly. VA loans skip this entirely, though you pay more upfront via the funding fee.
Credit standards vary slightly. FHA publishes minimum score requirements while VA has no official floor, leaving it to individual lenders. In practice, most VA lenders want 620 or higher.
If you qualify for a VA loan, use it. The zero down payment and no monthly insurance beat FHA every time on cost. Even with the funding fee, you come out ahead.
FHA makes sense for non-military buyers who need flexible credit or can't reach conventional loan standards. It's the backup option when VA isn't available.
One exception: if you're buying a fixer in La Verne, FHA 203k rehab loans are easier to get than VA renovation loans. But for standard purchases, VA wins decisively for eligible borrowers.
Yes, VA loans are reusable once you sell the previous home or pay off that loan. Your entitlement restores and you can buy again with zero down.
Yes, if you put down less than 10%. With 10% or more down, FHA removes insurance after 11 years but most borrowers refinance out sooner.
VA loans typically price 0.25% to 0.5% lower than FHA because they carry less risk for lenders. Rates vary by borrower profile and market conditions.
Both work for condos but the complex must be approved by FHA or VA. Many older La Verne condo developments haven't gone through approval yet.
FHA requires 580 minimum officially. Most VA lenders want 620 or higher despite no official floor, though we see approvals at 580 with strong income.