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in Lancaster, CA
Lancaster buyers have two strong mortgage options if you qualify for VA benefits. Conventional loans dominate the market here, but VA loans offer unbeatable terms for veterans and active military.
The choice hinges on your down payment capacity and military service status. Both loans close deals in Lancaster's Antelope Valley market daily.
Conventional loans are the standard for most Lancaster homebuyers. You need 620 minimum credit and steady income documentation.
Put down less than 20% and you'll pay PMI until you hit 20% equity. Loan limits go up to $806,500 in Los Angeles County for 2024.
These loans work for any property type in Lancaster. Condos, single-family homes, investment properties all qualify.
VA loans eliminate the down payment barrier completely. Veterans can buy a $400,000 Lancaster home with zero money down.
You'll pay a one-time funding fee instead of monthly PMI. That fee ranges from 1.4% to 3.6% depending on down payment and service history.
VA loans cap how much sellers can charge in closing costs. Lenders also can't charge some fees conventional loans allow.
Down payment separates these options most. VA eliminates it entirely while conventional demands at least 3%.
Monthly costs differ too. Conventional PMI runs $100-300 monthly on a $400,000 Lancaster home. VA loans skip PMI but add a funding fee upfront.
Property standards vary. VA appraisers enforce stricter condition requirements than conventional inspectors. Fixer-uppers often fail VA inspection.
Use VA if you qualify. The zero-down benefit alone saves years of saving in Lancaster's market.
Conventional makes sense for non-military buyers or veterans buying investment properties. VA loans only cover primary residences.
Some Lancaster sellers prefer conventional offers over VA. The stricter inspections scare sellers with older homes.
Yes, but the condo complex must be VA-approved. Most newer Lancaster developments qualify, older complexes often don't.
Expect $100-300 monthly on a $400,000 home with 5% down. PMI drops off automatically at 78% loan-to-value.
Not necessarily. Both typically close in 30-45 days. VA appraisals can add time if repairs are needed.
Yes, through a VA cash-out or rate-term refinance. You'll need to meet VA eligibility requirements and pay the funding fee.
VA loans often beat conventional rates by 0.25-0.5%. Rates vary by borrower profile and market conditions.