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in Pasadena, CA
Pasadena buyers with military service face a clear choice: use your VA benefit or go conventional. The right answer depends on your down payment, credit score, and how long you plan to stay.
VA loans eliminate down payments and monthly mortgage insurance. Conventional loans offer more property type flexibility and work for repeat buyers who've already used their VA entitlement.
Conventional loans require 3-20% down depending on your situation. You'll pay mortgage insurance if you put down less than 20%, but it drops off once you hit 78% loan-to-value.
Credit requirements start at 620 for most programs, though you'll get better rates at 740+. These loans work for any property type and have no lifetime limits on how many times you can use them.
VA loans require zero down payment and never charge monthly mortgage insurance. You pay a one-time funding fee (2.3% for first use, 3.6% for subsequent), which gets rolled into your loan amount.
Rates typically run 0.25-0.5% lower than conventional because the VA guarantee reduces lender risk. You can use your benefit multiple times, but you need remaining entitlement for each purchase.
The down payment gap matters most in Pasadena. Zero down on a $900k home beats scraping together $27k-$180k for conventional, even with the 2.3% funding fee added to your loan.
Monthly costs favor VA heavily below 20% down. A conventional buyer putting down 10% pays PMI until they reach 78% LTV—often 7-10 years. VA buyers never pay it. Rates vary by borrower profile and market conditions.
Use VA if you're eligible and buying a primary residence. The zero-down benefit and lack of PMI save you tens of thousands over the loan life, even after the funding fee.
Go conventional if you've exhausted your VA entitlement, want an investment property, or need a jumbo loan above VA county limits. Also consider conventional if the seller balks at VA appraisal requirements.
Yes, you can reuse your VA benefit after selling or paying off your previous VA loan. You need sufficient remaining entitlement for each purchase.
Both close in 21-30 days with experienced lenders. Some sellers prefer conventional due to perceived appraisal risks with VA loans.
Both typically require 620 minimum, though VA lenders sometimes approve 580+ scores. Higher scores unlock better rates on both programs.
No. The 2.3% one-time fee costs less than 5-10 years of monthly PMI on conventional loans below 20% down.
Yes if you receive VA disability compensation or are a surviving spouse. Otherwise, the fee applies to all VA loans.