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in Paramount, CA
Both FHA and VA loans help Paramount buyers get approved with less cash upfront than conventional mortgages require. The difference comes down to military service — VA loans reward veterans with zero down payment, while FHA loans serve anyone who qualifies regardless of service history.
Most Paramount buyers choose between these two based on eligibility first, costs second. If you're a veteran, VA loans almost always beat FHA on pricing and monthly payments. If you're not military, FHA becomes your best path to homeownership with minimal savings.
FHA loans require just 3.5% down with a 580 credit score, making them the entry point for most first-time buyers in Paramount. You'll pay an upfront mortgage insurance premium of 1.75% plus monthly MI that stays on most loans for the full term.
Sellers can contribute up to 6% toward your closing costs, which helps when cash is tight. FHA allows higher debt-to-income ratios than conventional loans — we regularly get buyers approved at 50% DTI when their income and credit support it.
VA loans eliminate the down payment entirely for eligible veterans and active-duty service members. You pay a one-time funding fee instead of ongoing mortgage insurance — typically 2.3% for first-time use, which gets rolled into your loan amount.
No monthly MI means your payment stays lower than FHA throughout the loan term. VA loans also skip the strict debt ratio caps that conventional lenders enforce — we've closed deals at 55% DTI when residual income supports the payment.
The down payment gap is obvious — VA needs nothing, FHA needs 3.5%. But monthly costs tell the bigger story. FHA's mortgage insurance runs 0.55% to 0.85% annually and never drops off. VA charges no monthly MI, just the upfront funding fee.
On a $450,000 Paramount home, FHA requires $15,750 down plus $8,100 in upfront MI. Your monthly payment includes roughly $280 in mortgage insurance. VA requires zero down but adds a $10,350 funding fee to your loan. Your monthly payment saves that $280 every month — $3,360 per year.
If you're eligible for VA, use it. The zero down payment and lack of monthly mortgage insurance save you tens of thousands over the loan term. The only exception is when your funding fee exemption status or second-time use changes the math — we run those numbers for every veteran client.
If you're not military, FHA becomes your strongest option with limited savings. You'll pay more monthly than VA borrowers, but 3.5% down beats the 5-20% conventional lenders demand. Many Paramount buyers refinance to conventional once they hit 20% equity to drop the mortgage insurance.
No, you choose one loan type per property. Veterans typically pick VA for better terms unless they're buying a multi-unit property where FHA's lending limits work better.
VA loans typically price 0.25% to 0.50% below FHA rates because they carry less risk for lenders. Rates vary by borrower profile and market conditions.
Neither requires an inspection, but VA mandates an appraisal with specific property condition standards. FHA appraisals check for safety issues but care less about cosmetic details than VA.
Yes, but the condo complex must be approved by FHA or VA. Many Paramount complexes qualify for both programs, though VA's approval list is slightly more restrictive.
FHA typically closes slightly faster because VA appraisals require stricter property inspections. Expect 30-40 days for either loan in normal conditions.