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in Lakewood, CA
Lakewood buyers with military service face a choice: use your VA benefit or go conventional. Most active-duty and veteran buyers in LA County automatically assume VA is better, but that's not always true.
Your best option depends on credit score, down payment savings, and how long you plan to stay. We've closed hundreds of both loan types in Lakewood and see clear patterns in who benefits from each.
Conventional loans require 3-20% down and charge PMI under 20% equity. You need 620+ credit for most programs, though 680+ gets you competitive rates.
These loans close faster than VA in competitive markets. Lakewood sellers often prefer them because there's no VA appraisal process that can kill deals over minor property issues.
Rate pricing is straightforward with conventional financing. Your rate depends on credit score, down payment, and loan amount—no funding fees or complex VA calculations.
VA loans let eligible veterans and service members buy with zero down. No PMI ever, regardless of equity position, which saves $150-400 monthly on typical Lakewood home prices.
The VA funding fee ranges from 1.4-3.6% depending on down payment and first-time use. You can roll it into your loan amount, but it adds to your total borrowing cost.
VA appraisals protect you but can complicate deals. The appraiser flags property condition issues that conventional appraisers ignore, giving sellers reason to reject VA offers in hot markets.
Down payment creates the biggest split. VA needs nothing upfront while conventional requires 3-20% saved, which on a $650k Lakewood home means $19,500-130,000 cash to close.
Monthly costs favor VA when you put down less than 20% conventional. A $600k loan conventional with 5% down costs about $250/month more due to PMI versus VA with no mortgage insurance.
Seller acceptance tells the real story. We see Lakewood sellers counter VA offers more often, especially on homes needing work, because they fear appraisal issues killing the deal.
Choose VA if you're putting down less than 10% and plan to stay 5+ years. The PMI savings outweigh the funding fee over time, and zero down preserves cash for emergencies.
Go conventional if you have 10%+ saved and want seller preference. You'll close faster, avoid VA appraisal complications, and your offer carries more weight in multiple-bid situations.
Credit under 640 usually pushes you toward VA—conventional rates get punitive below that threshold. Above 720 with 15%+ down, conventional often prices better when you factor in the funding fee.
VA loans work on most single-family homes and approved condos. Properties need to meet minimum condition standards that conventional loans don't require.
Conventional loans typically close 5-10 days faster. VA appraisals take longer and can require property repairs before funding.
Not if you're putting down under 10%. The monthly PMI savings with VA usually exceed the funding fee cost over a typical ownership period.
Some will, especially on fixer properties. Sellers worry about VA appraisal requirements killing deals, making conventional offers more attractive.
Yes, but you'll restart underwriting. Most borrowers lock one loan type early to preserve closing timelines and rate locks.