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in Paramount, CA
Paramount buyers have two strong financing paths: conventional loans that reward good credit, and VA loans that eliminate down payments for veterans. Your military service status matters more than anything here.
We see both loan types close deals in Paramount daily. Each fits different borrower profiles, with VA loans offering massive upfront savings while conventional loans give more property flexibility.
Conventional loans work for any buyer with decent credit and stable income. You need at least 3% down, though 20% avoids private mortgage insurance completely.
Lenders want 620+ credit scores for approval, higher for best rates. These loans handle condos, multi-units, and investment properties better than VA options do in Paramount.
VA loans eliminate down payments entirely for eligible veterans and active-duty service members. You pay a funding fee instead of PMI, which can be rolled into your loan amount.
No minimum credit score exists officially, though most lenders want 580-620. VA appraisals scrutinize property condition harder than conventional appraisals do.
Down payment splits these dramatically: VA needs nothing upfront while conventional requires 3-20%. That's $15,000-$100,000 saved with VA on a typical Paramount home.
VA loans charge a funding fee of 2.15-3.3% depending on service type and down payment. Conventional loans require PMI until you hit 20% equity, usually $100-300 monthly.
Choose VA if you're eligible, period. Saving the entire down payment beats any conventional benefit unless you're buying a fixer-upper that won't pass VA inspection.
Go conventional when buying condos not on VA-approved lists, investment properties, or homes needing major repairs. Also your only choice if you're not military-connected.
Not all properties qualify. VA appraisals reject homes with safety issues, needed repairs, or condos lacking VA approval. Conventional loans accept these properties.
Conventional loans typically close 3-5 days faster. VA appraisals take longer and sellers sometimes prefer conventional offers over VA financing.
Rates run similar, sometimes VA edges lower by 0.125-0.25%. Your credit score affects conventional rates more than VA rates.
Veterans with service-connected disabilities skip the funding fee entirely. First-time VA users with 10%+ down pay reduced fees of 1.25-1.65%.
Conventional loans need 620 minimum, 740+ for best rates. VA lenders typically want 580-620 though no official minimum exists.