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in Monterey Park, CA
Both FHA and VA loans help buyers get into Monterey Park homes with less cash upfront than conventional financing requires. The right choice depends entirely on whether you qualify for VA benefits and how much you can put down.
FHA loans work for any qualified buyer willing to make a 3.5% down payment. VA loans beat them on terms but only serve military members, veterans, and eligible surviving spouses.
FHA loans let you buy with just 3.5% down if your credit score hits 580. Scores between 500-579 still qualify but require 10% down instead.
You'll pay mortgage insurance twice: an upfront premium of 1.75% and monthly premiums that last 11 years to life depending on your down payment. Debt-to-income ratios can stretch to 43% and sometimes higher with compensating factors.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee between 1.4% and 3.6% based on down payment and whether you've used the benefit before.
Credit requirements run more flexible than FHA despite no minimum score mandate. Most lenders want 620 but we've closed VA deals in the high 500s with strong compensating factors.
The down payment gap matters most in Monterey Park where every dollar counts. VA borrowers keep that 3.5% in reserves while FHA buyers must bring it to closing.
Monthly costs differ significantly too. VA loans skip mortgage insurance entirely while FHA charges it monthly regardless of equity. On a $600,000 purchase, that's roughly $250-300 more per month with FHA financing.
If you qualify for VA benefits, use them. The zero-down structure and absence of mortgage insurance save tens of thousands over the loan life compared to FHA.
FHA wins by default if you lack military service credentials. It also works better for borrowers with credit scores under 580 since VA lenders rarely approve below that threshold despite no official minimum.
You can, but it makes no financial sense. VA loans cost less monthly and require no down payment while FHA demands 3.5% down plus mortgage insurance.
Both take 30-45 days typically. VA appraisals sometimes add a few days but the difference rarely affects your closing timeline meaningfully.
Yes, but the condo complex must be FHA or VA approved respectively. We check approval status before you write an offer to avoid wasted time.
VA charges 2.3% once on first use with zero down. FHA charges 1.75% upfront plus monthly premiums that total far more over time.
Sellers can reject any offer. Some avoid government loans fearing appraisal issues, but strong offers with either loan type win deals regularly here.