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in Los Angeles, CA
Los Angeles homebuyers choosing between conventional and VA loans face different tradedown scenarios. Veterans get zero down with no PMI, while conventional buyers need stronger credit and cash reserves.
Both loan types work across LA's diverse housing stock, from Silver Lake condos to Valley single-families. Your eligibility and upfront cash determine which path makes sense.
Conventional loans require 620 minimum credit and at least 3% down. You'll pay PMI on anything under 20% down until you hit 78% loan-to-value.
Most LA buyers use conventional financing because it works for any property type with no occupancy restrictions. Loan limits go up to $1,249,125 for high-balance conforming in LA County.
VA loans require military service but eliminate the down payment entirely. No PMI ever, regardless of how little you put down.
You'll pay a one-time funding fee that varies from 1.4% to 3.6% depending on down payment and service history. Most borrowers roll this into the loan amount rather than paying upfront.
Local decision guide
Use this comparison to weigh Conventional Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Los Angeles.
Los Angeles homebuyers choosing between conventional and VA loans face different tradedown scenarios. Veterans get zero down with no PMI, while conventional buyers need stronger credit and cash reserves.
Both loan types work across LA's diverse housing stock, from Silver Lake condos to Valley single-families. Your eligibility and upfront cash determine which path makes sense.
Conventional loans require 620 minimum credit and at least 3% down. You'll pay PMI on anything under 20% down until you hit 78% loan-to-value.
Down payment separates these loans fastest. VA lets eligible borrowers finance 100% while conventional requires cash upfront, even at minimum 3%.
Monthly costs differ significantly too. A $750,000 purchase with 5% down costs about $280/month in PMI on conventional. That same VA loan has zero PMI but a $21,000 funding fee rolled into the balance.
Credit flexibility tilts toward VA. Lenders approve VA loans at 580-600 credit scores we'd never touch on conventional. Debt-to-income ratios stretch higher on VA too.
Use VA if you qualify, period. Saving $50,000-$150,000 in down payment money beats any conventional loan benefit for most LA buyers.
Conventional makes sense in three scenarios: you're not eligible for VA, you're buying a fixer that won't pass VA appraisal standards, or you're purchasing investment property. Otherwise VA wins on pure math.
Yes, if the building is VA-approved. Many LA condos aren't on the VA approval list, which pushes buyers to conventional financing instead.
Conventional typically closes 3-5 days faster because VA appraisals take longer. Some LA sellers prefer conventional offers for this reason.
Usually yes, by 0.25-0.50%. Government backing reduces lender risk, which translates to better rates for qualified veterans.
Only if you receive VA disability compensation or you're a surviving spouse. Otherwise the fee applies to all VA purchase loans.
VA loan limits match conventional at $1,249,125 in LA County. Above that amount, both require jumbo financing with stricter requirements.