Loading
in Long Beach, CA
Both FHA and VA loans help Long Beach buyers get into homes with less money down than conventional mortgages require. The main difference: VA loans are exclusively for military members and veterans, while FHA loans are available to anyone who qualifies.
If you're eligible for both programs, VA typically wins on cost and terms. But most buyers don't have that choice—your military service status determines whether VA is even an option.
FHA loans require just 3.5% down with a credit score as low as 580. That puts a $600,000 Long Beach condo within reach with $21,000 down instead of the $120,000 conventional loans typically demand.
You'll pay mortgage insurance premiums both upfront (1.75% of loan amount) and monthly for the life of most FHA loans. This insurance protects lenders, not you, but it's what allows the low down payment. Rates run close to conventional loans—usually within 0.25%.
VA loans require zero down payment for eligible veterans and active-duty service members. You can finance 100% of a Long Beach home's purchase price with no monthly mortgage insurance—a huge advantage over FHA.
Instead of mortgage insurance, you pay a one-time funding fee ranging from 1.4% to 3.6% of the loan amount depending on your service history and down payment. Veterans with service-connected disabilities get this fee waived entirely. Rates typically run 0.25% to 0.5% lower than FHA.
The down payment difference alone shifts the math dramatically. On a $700,000 Long Beach home, FHA requires $24,500 down while VA needs nothing. That's $24,500 you can use for furniture, repairs, or reserves.
Monthly costs favor VA even more. FHA charges ongoing mortgage insurance—typically $300-500 monthly on a $700,000 loan. VA has no monthly insurance and lower rates. Over 30 years, that saves veterans $100,000+ compared to FHA on the same property.
Credit requirements are stricter with VA. Most VA lenders want 620+ scores, while FHA approves borrowers at 580. FHA also allows higher debt-to-income ratios—up to 56.9% versus VA's typical 41% cap.
If you're eligible for VA, use it. The zero down payment, no mortgage insurance, and lower rates make it the best mortgage program available. The only reason to choose FHA as a veteran is if your credit score sits below 620 or your debt ratios exceed VA limits.
If you're not military-affiliated, FHA is your best low-down-payment option in Long Beach. It beats conventional loans for buyers with limited savings or credit scores below 680. Just understand you're paying for that accessibility through lifetime mortgage insurance and slightly higher rates.
Yes, but the condo complex must be FHA or VA approved. Many Long Beach buildings qualify, but older complexes or those with deferred maintenance often don't make the list.
VA funding fees run higher than FHA upfront insurance on zero-down purchases. But sellers can pay all closing costs on VA loans, while FHA caps seller contributions at 6%.
VA has no loan limit for full-entitlement borrowers in Long Beach. FHA caps at $644,000 for a single-family home in Los Angeles County in 2024.
Yes. Veterans often refinance FHA loans to VA once they qualify to eliminate mortgage insurance. You can also refinance VA to FHA, though few borrowers benefit from that move.
FHA accepts lower credit scores and higher debt ratios. VA requires stronger credit but rewards military service with superior terms once you clear the threshold.