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in Pomona, CA
Both FHA and VA loans help Pomona buyers enter the market with less cash upfront than conventional loans require. The right choice depends entirely on your military service status and how much you can put down.
FHA loans work for anyone who qualifies. VA loans beat them on terms but only serve veterans and active-duty military. Your eligibility decides this comparison before you look at a single number.
FHA loans let you buy with just 3.5% down if your credit score hits 580. Scores between 500-579 still qualify but need 10% down. Most Pomona buyers we work with close FHA deals with credit in the 620-680 range.
You'll pay two types of mortgage insurance: 1.75% upfront (rolled into the loan) plus annual premiums of 0.55%-0.85%. That insurance stays for the loan's life if you put down less than 10%. Loan limits in Los Angeles County reach $644,000 for single-family homes.
VA loans require zero down payment and no monthly mortgage insurance. You pay a one-time funding fee of 2.3% for first use (1.4% if you're in the Reserves or National Guard). That fee drops to 3.6% on subsequent use unless you're disabled or receiving VA compensation.
Credit requirements flex lower than FHA in practice. We close VA loans in Pomona for veterans with 580-600 scores regularly. The county loan limit matches FHA at $644,000, but qualified borrowers can go higher by making a down payment on the excess.
The math favors VA dramatically if you qualify. Skip the down payment entirely and avoid monthly insurance that costs $200-400 on a typical Pomona home. The VA funding fee looks steep at 2.3%, but it's half what FHA charges over time through monthly premiums.
FHA serves a wider audience but costs more long-term. That lifetime mortgage insurance adds up. On a $500,000 purchase, you'll pay roughly $350 monthly in FHA insurance versus nothing with VA. Over 30 years, that's $126,000 in extra costs.
Use VA if you have the Certificate of Eligibility. The savings crush FHA on every metric that matters. The only reason to pick FHA when you qualify for VA is if you've already used your full entitlement and don't want to make a down payment on the excess amount.
Choose FHA if you're not military-affiliated or lack the VA certificate. It still beats conventional loans for buyers with limited down payment funds or credit in the 580-680 range. Pomona's diverse housing stock from downtown condos to north Pomona single-families works with either program.
Yes, up to four units if you occupy one as your primary residence. FHA allows the same multi-family structure with the same occupancy requirement.
Similar timelines of 30-45 days for both. VA appraisals sometimes take longer, but FHA inspections can add time too depending on property condition.
Some resist both government loans due to stricter property standards. VA faces slightly more seller resistance, but a strong offer overcomes it in most cases.
Absolutely, and most veterans should. You'll eliminate mortgage insurance and potentially lower your rate through a VA refinance once you secure your certificate.
FHA requires 10% down under 580. VA has no official floor, but most lenders want 580 minimum even for veterans with strong compensation history.