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in Rancho Palos Verdes, CA
Both FHA and VA loans help buyers crack into Rancho Palos Verdes with minimal cash upfront. The right choice depends entirely on whether you qualify for VA benefits.
If you're military-affiliated, VA beats FHA in almost every category. If you're not, FHA remains your strongest low-down-payment play in this coastal market.
FHA loans let you buy with just 3.5% down if your credit score hits 580. That's $35,000 on a million-dollar home, not the $200,000 conventional lenders demand.
You'll pay mortgage insurance for the loan's life unless you refinance later. Monthly MIP runs 0.55% to 0.85% annually, plus a 1.75% upfront fee rolled into your loan.
VA loans require zero down payment for eligible veterans and service members. No mortgage insurance ever, which saves $500 to $800 monthly on typical Rancho Palos Verdes purchases.
You pay a one-time funding fee instead—2.3% for first use with zero down. Disabled veterans skip this fee entirely, making VA the cheapest financing available.
VA wins on monthly cost because you skip mortgage insurance. On a $900,000 loan, that's $600 monthly versus FHA's ongoing MIP—$7,200 yearly in your pocket.
FHA accepts lower credit scores and doesn't require military service. If your score sits below 620, FHA approves deals VA lenders would decline. Rates vary by borrower profile and market conditions.
Choose VA if you're eligible—period. You save thousands yearly on insurance and start with zero down, which matters in expensive Palos Verdes neighborhoods.
Use FHA if you're not military-affiliated or your credit sits between 580-619. It's still your best route into coastal properties without massive down payments conventional loans demand.
Yes, but the condo complex must be FHA or VA approved. Many coastal complexes qualify, but check approval status before making offers.
VA typically costs less because sellers can pay more of your fees. FHA limits seller concessions to 6% of purchase price.
Not anymore. Both close in 25-35 days with organized buyers. VA appraisals sometimes require repairs FHA skips, which can add time.
No. Both FHA and VA require you to occupy the property as your primary residence within 60 days of closing.
You can restore entitlement by selling and paying off your VA loan. You can also use remaining entitlement for a second VA purchase.