Loading
in Palmdale, CA
Palmdale buyers often choose between conventional and VA financing. The right pick depends on military service status and how much cash you can bring to closing.
VA loans dominate purchases near Edwards Air Force Base for good reason. Conventional loans still win for many civilian buyers who have the down payment saved.
Conventional loans are not backed by the government. They follow Fannie Mae and Freddie Mac guidelines with minimum credit scores around 620.
You typically need 3-5% down for a primary residence. Putting down 20% eliminates private mortgage insurance and often secures better rates.
These loans work for any property type in Palmdale. Debt-to-income ratios max out around 50% for most borrowers with strong credit.
VA loans are guaranteed by the Department of Veterans Affairs. Eligible veterans and active-duty service members pay zero down payment on homes up to $806,500 in Los Angeles County.
No private mortgage insurance means lower monthly payments despite 100% financing. The VA funding fee ranges from 1.25% to 3.3% depending on service type and down payment.
Credit requirements are more flexible than conventional loans. Many lenders approve scores as low as 580 for VA financing.
The down payment gap is the biggest difference. VA loans allow 100% financing while conventional loans need at least 3% down plus closing costs.
Monthly costs differ significantly on identical purchase prices. A VA loan skips mortgage insurance entirely while conventional loans add $150-300 monthly until you hit 20% equity.
Sellers sometimes prefer conventional buyers. VA appraisals are strict about property condition and required repairs can delay or kill deals.
Use VA financing if you qualify for it. The zero down payment and no mortgage insurance save tens of thousands over the loan life.
Pick conventional if you are not military-eligible or buying a fixer property. Some Palmdale sellers won't accept VA offers on homes needing work due to appraisal requirements.
Conventional also makes sense if you have 20% down saved and want maximum negotiating power. You will avoid both PMI and the VA funding fee this way.
Yes, as long as the property passes VA appraisal standards for safety and livability. Homes needing major repairs often don't qualify until fixed.
VA loans typically offer rates 0.25-0.50% lower than conventional. Rates vary by borrower profile and market conditions.
No, minimum scores start at 620. Higher scores unlock better rates and allow higher debt ratios though.
Yes, veterans with service-connected disabilities are exempt. Otherwise you pay 1.25-3.3% at closing or finance it into the loan.
Conventional loans typically close 3-5 days faster. VA appraisals add time and sometimes require repairs before funding.