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in Palos Verdes Estates, CA
Palos Verdes Estates homes command premium prices. Your loan choice directly affects how much you pay and whether you even qualify.
Conventional loans require skin in the game but offer flexibility. VA loans eliminate down payments but carry strict service requirements.
Both work in this market. We place deals with each loan type weekly across the Peninsula.
Conventional loans come from private lenders without government backing. You need solid credit and income documentation to qualify.
Down payments start at 3% for first-time buyers, 5% for repeat buyers. Expect private mortgage insurance under 20% down.
Credit minimums hit 620 for most programs. Stronger scores unlock better rates and lower monthly costs.
These loans handle any property type in Palos Verdes Estates. No caps on purchase price or loan amount for conforming limits.
VA loans eliminate down payments for eligible veterans and service members. You put zero down regardless of purchase price.
No monthly mortgage insurance exists on VA loans. That cuts your payment compared to low-down conventional options.
You pay a funding fee upfront, typically 2.3% for first use. Veterans with service-connected disabilities skip this fee entirely.
Credit requirements run more flexible than conventional. We regularly approve VA borrowers at 580-600 credit scores.
Down payment separates these programs most clearly. VA gives zero down while conventional demands 3-20% cash.
Mortgage insurance works differently. Conventional charges monthly PMI under 20% down. VA has no monthly insurance but charges an upfront funding fee.
Property restrictions matter for VA loans. The home must be owner-occupied and meet specific habitability standards. Conventional financing covers investment properties and second homes.
Seller concessions run higher on VA. Sellers can pay up to 4% of closing costs versus 3% on conventional deals.
Choose VA if you qualify through military service. Saving 10-20% down on a Palos Verdes Estates home takes years. Zero down gets you in now.
Pick conventional for investment properties or second homes. VA only covers primary residences you occupy.
VA makes sense even with money saved. Use that cash for reserves or property improvements instead of down payment.
Conventional wins if you want to avoid the funding fee and can put 20% down. You skip both PMI and the VA fee entirely.
Yes, VA loans work in Palos Verdes Estates with zero down regardless of price. The property must meet VA appraisal standards and be owner-occupied.
VA typically costs less monthly because it eliminates mortgage insurance. Conventional with less than 20% down carries PMI that increases your payment.
Most conventional programs start at 620 credit. Higher scores get better rates but you don't need perfect credit to qualify.
Yes, VA loans have no maximum purchase price. You need sufficient income to qualify for the payment, but price caps don't exist.
Many borrowers still choose VA to keep cash liquid. You could also use conventional to avoid the funding fee and skip PMI entirely.
Rates vary by borrower profile and market conditions. VA often offers slightly lower rates due to government backing, but differences change daily.