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in Long Beach, CA
Long Beach has one of the largest veteran populations in Los Angeles County. That means choosing between conventional and VA financing isn't theoretical — it's a daily decision for military families buying here.
Both loans close deals in this market. The right choice depends on whether you have VA eligibility and how much you want to put down.
Conventional loans are the standard mortgage most buyers use. They're not backed by any government agency, which means lenders set the rules on credit, income, and down payment.
You need at least 3% down, though you'll pay PMI until you hit 20% equity. Credit score minimums typically start at 620, but competitive rates require 700+.
These loans work for primary homes, second homes, and investment properties. Loan limits for Long Beach conforming loans are higher than most of the country but still cap out.
VA loans are guaranteed by the Department of Veterans Affairs for eligible service members and veterans. Zero down payment is the headline feature, but the benefits go deeper.
No PMI ever, regardless of down payment. VA funding fees replace it but can be rolled into the loan. Sellers can pay all your closing costs in Long Beach without triggering appraisal issues.
Credit requirements are more flexible than conventional. Many lenders approve VA loans at 580-600 credit scores. The VA doesn't set a minimum — individual lenders do.
Down payment separates these loans immediately. VA requires nothing. Conventional demands at least 3%, and you'll compete better in Long Beach with 10-20% down.
Monthly costs favor VA loans heavily. No PMI saves $100-300/month on typical Long Beach home prices. That gap persists until conventional borrowers hit 20% equity and drop PMI.
Property eligibility differs. Conventional works for condos, investment properties, and second homes. VA restricts you to primary residences and has stricter condo approval requirements.
If you have VA eligibility, use it for your primary home purchase in Long Beach. The zero down and no PMI advantages are real money every month. You'd need a compelling reason not to.
Conventional makes sense for veterans in specific scenarios: buying a second home, purchasing investment property, or if the VA funding fee outweighs the benefits for high-balance refinances.
Non-veterans don't have the choice. Conventional is your path unless you qualify for FHA or other government programs.
Yes, but the condo complex must be VA-approved. Many Long Beach buildings aren't on the approved list, which limits your options compared to conventional financing.
Not anymore. VA appraisals used to delay closings, but most Long Beach deals close in 21-30 days regardless of loan type.
Some still prefer conventional, but VA buyers are common here. Strong pre-approval and quick close timeline matter more than loan type.
Yes, if you're eligible and within rate lock timelines. We resubmit to VA lenders if it saves you money.
VA rates run 0.25-0.50% lower on average. Rates vary by borrower profile and market conditions, but VA consistently prices better.