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in Pomona, CA
Pomona buyers face a choice between conventional loans that reward strong credit and VA loans that eliminate down payments for veterans. Each has distinct advantages depending on your military status and financial profile.
Veterans with stable income often save thousands using VA benefits. Civilian buyers with 5-10% down and 680+ credit scores typically compete better with conventional financing in multiple-offer situations.
Conventional loans require 3-20% down and minimum 620 credit scores, though 680+ gets better rates. Private mortgage insurance applies when you put down less than 20%, adding $100-300 monthly on typical Pomona home prices.
These loans work for any qualified borrower and offer flexibility on property types. Lenders set their own guidelines within Fannie Mae and Freddie Mac standards, so we shop 200+ sources to find the best fit for your situation.
You can cancel PMI once you hit 20% equity through payments or appreciation. Rate and term options range from 10 to 30 years, with fixed and adjustable structures available based on your plans for the property.
VA loans put veterans into homes with zero down payment and no monthly mortgage insurance. The upfront funding fee runs 2.15-3.3% but gets rolled into the loan amount, so you close without that cash outlay.
Credit requirements are more forgiving than conventional standards. Most lenders approve 580+ scores, though 620+ opens more competitive rate options across our wholesale network.
You must use the property as your primary residence and have qualifying military service. The VA Certificate of Eligibility takes 2-3 weeks to obtain, so we start that process early in every veteran's loan application.
Down payment separates these programs most dramatically. Conventional requires 3-20% cash while VA allows zero down for eligible veterans, putting $15,000-60,000 back in your pocket on typical Pomona purchases.
Monthly costs favor VA loans even with the funding fee included. Conventional buyers pay PMI until reaching 20% equity, while VA borrowers never carry mortgage insurance regardless of down payment size.
Conventional loans close faster in competitive markets since they lack VA appraisal requirements. Sellers sometimes prefer conventional offers because VA appraisers flag repair items that must be fixed before closing.
Use your VA benefit if you have it and plan to live in the home. The zero-down advantage and lack of PMI create immediate savings that dwarf any perceived disadvantages in seller negotiations.
Go conventional if you're not eligible for VA or buying investment property. Buyers with 10%+ down and 740+ credit scores get rates within 0.125% of VA pricing while maintaining faster closing timelines.
Some veterans still choose conventional when buying in hot markets with multiple offers. Waiving the VA appraisal contingency isn't allowed, so a conventional loan with 5-10% down can strengthen your position against competing buyers.
Yes, veterans can use conventional financing anytime. Some do this in competitive markets or for investment properties where VA loans aren't allowed.
First-time VA users pay 2.15% with zero down, or $6,450 on a $300,000 loan. That amount finances into the mortgage and spreads across 30 years of payments.
VA closings run 30-40 days versus 25-30 for conventional. The VA appraisal adds 5-7 days, and repair requirements occasionally extend timelines further.
Conventional loans start at 620 but prefer 680+ for competitive rates. VA loans regularly approve 580-600 scores through our wholesale lender network.
Yes, VA loans work on 2-4 unit properties if you occupy one unit. Conventional loans offer the same option with 15-25% down payment requirements.