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in Rancho Palos Verdes, CA
Rancho Palos Verdes sits on the Palos Verdes Peninsula with ocean views and high property values. Both conventional and VA loans work here, but your eligibility and down payment capacity determine which makes sense.
Conventional loans require 3-20% down and strong credit. VA loans need zero down but only veterans, active-duty service members, and surviving spouses qualify.
Conventional loans let you buy with 3% down on primary residences or 10-20% for investment properties. You pay PMI until you hit 20% equity, which adds $100-300 monthly on most loans.
These loans max out at $766,550 in Los Angeles County for 2024. Above that, you need a jumbo loan with stricter requirements and higher rates.
Lenders want 620+ credit for approval, though 700+ gets you the best rates. Debt-to-income ratios typically cap at 45-50% depending on compensating factors.
VA loans require zero down payment on any purchase price. You pay a one-time funding fee of 2.15-3.3% depending on service type and usage, but disabled veterans skip this entirely.
No PMI ever, regardless of down payment. This saves $200-400 monthly compared to conventional loans with minimal down.
VA loans also max at $766,550 in LA County without requiring a down payment. Above that, you make a down payment on the excess amount only.
Down payment separates these loans most. VA borrowers keep 20% in the bank while conventional buyers spend it upfront. On a $900,000 Rancho Palos Verdes home, that's $180,000 in cash.
VA loans eliminate PMI completely. Conventional loans charge PMI until you hit 20% equity through payments or appreciation. This difference adds up to $36,000 over ten years on typical loans.
Sellers sometimes resist VA offers because VA appraisals scrutinize property condition harder than conventional appraisals. In competitive Peninsula markets, this creates friction even with strong offers.
Choose VA if you qualify. Zero down and no PMI beat conventional loans financially in almost every scenario. The funding fee costs less than years of PMI payments.
Use conventional when you lack VA eligibility or the property fails VA condition standards. Some older Rancho Palos Verdes homes need repairs before VA approval.
First-time buyers with VA eligibility should use it. You preserve cash for closing costs, repairs, and reserves while building equity from day one.
Yes, if the condo complex has VA approval. Many Peninsula complexes qualify, but verify before making offers.
No. Your VA loan eligibility lasts forever once you qualify through service requirements.
Veterans with service-connected disabilities pay no funding fee. All others pay 2.15-3.3% depending on circumstances.
Both close in 30-45 days typically. VA appraisals sometimes take longer due to stricter property condition reviews.
No. VA loans verify you earn enough to afford payments but set no maximum income caps.