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in Malibu, CA
Malibu's real estate sits well above typical FHA and VA loan limits, but understanding these programs matters for condos and smaller properties. Both offer low-down-payment paths backed by the government.
FHA serves anyone with qualifying credit and income. VA requires military service but delivers unmatched benefits for those who qualify.
FHA requires just 3.5% down with credit scores as low as 580. You'll pay upfront mortgage insurance plus monthly premiums regardless of down payment size.
FHA loan limits in Los Angeles County cap at $1,149,825 for single-family homes in 2024. That covers some Malibu condos but misses most single-family properties.
VA loans require zero down payment and carry no monthly mortgage insurance. Veterans with full entitlement can borrow up to $1,149,825 without a down payment.
The VA funding fee runs 2.15% for first-time zero-down buyers but can be financed into the loan. Disabled veterans get this fee waived entirely.
Eligibility splits these programs sharply. FHA accepts anyone who qualifies financially. VA demands military service but rewards it with superior terms.
Monthly costs favor VA heavily. Skip the mortgage insurance and you save hundreds per month. FHA charges 0.55% to 0.85% annually on the full loan amount.
Down payment flexibility differs too. FHA needs 3.5% minimum. VA offers true zero-down financing for eligible borrowers.
If you have VA eligibility, use it. The mortgage insurance savings alone justify the choice. You'll keep more equity and pay less monthly.
FHA makes sense when VA isn't available or you're buying a property requiring FHA-specific approvals. Some Malibu condos need FHA certification that VA won't require.
Most Malibu homes exceed the $1,149,825 loan limit for both programs. You'll need conventional or jumbo financing for properties above that threshold.
VA eliminates mortgage insurance, saving $500-800 monthly on a typical loan. FHA requires both upfront and monthly insurance regardless of down payment.
Yes. VA appraisals check for specific safety items. FHA appraisals assess property condition and require repairs for health and safety issues.
Absolutely. Higher down payments lower your loan amount but won't eliminate FHA mortgage insurance. VA never charges monthly insurance regardless of down payment.
Both require livable, safe properties. VA checks for specific items like peeling paint and roof condition. FHA has similar health and safety requirements.