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in Lawndale, CA
Both FHA and VA loans offer pathways to homeownership in Lawndale with lower barriers than conventional financing. The right choice depends entirely on your military service status and how much cash you have available.
FHA loans work for anyone meeting credit and income requirements. VA loans beat FHA on almost every metric, but you need military service to qualify.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay both upfront and monthly mortgage insurance for the life of most FHA loans, which increases your total cost.
These loans cap at $1,149,825 in Los Angeles County for single-family homes. Sellers can contribute up to 6% toward your closing costs, helping with upfront expenses in Lawndale's competitive market.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee that ranges from 1.4% to 3.6% depending on down payment and whether you've used the benefit before.
VA loans have no maximum loan amount in Los Angeles County as a high-cost area. Lenders typically cap around $2 million, but you face no government-imposed ceiling like FHA borrowers do.
Down payment creates the starkest divide. FHA needs 3.5% minimum while VA requires nothing. On a $700,000 Lawndale home, that's $24,500 versus $0 out of pocket.
Monthly costs favor VA loans heavily. FHA charges 0.55% annual mortgage insurance on your loan balance. VA has no monthly insurance, saving hundreds per month on the same purchase price.
If you qualify for a VA loan based on military service, use it. The zero down payment and absence of mortgage insurance make VA unbeatable for eligible borrowers in Lawndale.
FHA makes sense when VA isn't an option due to service requirements. The 3.5% down beats conventional 5-20% requirements, and sellers in Lawndale often accept FHA offers without hesitation.
Yes, but the condo complex must be VA-approved. Many Lawndale complexes have this approval, though FHA accepts more buildings than VA does.
Only if you put down 10% or more at purchase. Then it drops after 11 years. With 3.5% down, you pay mortgage insurance for the loan's life.
FHA typically closes slightly faster. VA requires a specialized appraisal that can add 3-7 days to the timeline in Los Angeles County.
Yes if you receive VA disability compensation or are a surviving spouse. Otherwise, the funding fee applies but can be rolled into your loan amount.
Most sellers accept both equally. VA appraisals are stricter about property condition, which can concern some sellers of older Lawndale homes.