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in Lomita, CA
Lomita sits in a unique pocket of LA County where military buyers from nearby San Pedro and Long Beach compete with traditional borrowers. Both conventional and VA loans work here, but they serve different buyer profiles.
VA loans dominate when eligible veterans want zero down. Conventional loans take over when down payment isn't an issue or the buyer isn't military-connected.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You need 620+ credit for most programs, though 740+ gets you the best rates.
Down payment starts at 3% for first-time buyers, 5% for repeat buyers. Put down 20% and you skip mortgage insurance entirely. Lenders check income through W-2s, tax returns, or bank statements for self-employed borrowers.
Rates vary by borrower profile and market conditions. Your credit score and down payment size directly affect your rate — higher scores and bigger down payments unlock lower pricing.
VA loans require zero down payment for eligible military members, veterans, and surviving spouses. The VA guarantees part of the loan, which lets lenders approve deals that conventional underwriters would decline.
Credit requirements are flexible — most lenders accept 580+ scores. You pay a VA funding fee upfront (usually rolled into the loan), but no monthly mortgage insurance. The seller can cover up to 4% of closing costs.
These loans cap what lenders can charge and limit what appraisers can overlook. If the home needs repairs, you'll know before closing.
Down payment separates these loans fastest. VA buyers put zero down while conventional buyers need 3-20%. That's $15,000-$100,000 saved upfront on a typical Lomita home.
Mortgage insurance works differently. Conventional loans charge monthly PMI until you hit 20% equity. VA loans charge a one-time funding fee but nothing monthly — a huge savings over time.
Property standards differ too. VA appraisers check for safety issues like peeling paint and faulty wiring. Conventional appraisers focus on value, not condition. This protects VA buyers but can kill deals on fixer homes.
Use VA if you're eligible — period. The zero down benefit alone beats conventional in almost every scenario. The only exceptions are VA inspection failures on older homes or when you're buying a multi-unit property beyond VA limits.
Conventional makes sense for non-military buyers or when you have 20% down and want to avoid the VA funding fee. It's also your only option for investment properties or when buying a home the VA appraiser would flag.
In Lomita, both loans work. The choice comes down to eligibility and property condition, not the local market.
Yes, as long as the home passes VA inspection standards. Older homes with deferred maintenance may fail VA appraisal but still qualify for conventional financing.
VA loans typically cost less monthly because they skip mortgage insurance. Conventional loans with less than 20% down include PMI that adds $50-$300+ per month.
Some sellers worry VA appraisals will kill the deal. Strong offers and quick closings matter more than loan type in most cases.
Conventional loans typically require 620+ credit, while VA loans accept 580+ at most lenders. Higher scores improve rates on both programs.
Veterans with service-connected disabilities are exempt. Everyone else pays 1.4-3.6% depending on down payment and whether it's a first-time VA loan use.