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in Redondo Beach, CA
Redondo Beach homebuyers often debate conventional versus VA financing. Both work in this coastal market, but they serve different borrowers with different trade-offs.
If you're military-affiliated, VA loans unlock zero-down access to Redondo's beach properties. Conventional loans give non-veterans flexibility with smaller down payments than many expect.
Conventional loans come from private lenders without government backing. You need decent credit—typically 620 minimum—and down payments as low as 3% for first-time buyers.
You'll pay PMI if you put down less than 20%, but you can drop it once you hit 20% equity. Loan limits are higher than FHA, which matters in Redondo where property values skew above county averages.
VA loans are backed by the Department of Veterans Affairs for eligible military members, veterans, and spouses. Zero down payment required, no matter the purchase price.
No PMI ever, even with zero down. You pay a one-time VA funding fee instead—typically 2.3% for first use with zero down, but it rolls into the loan. Credit requirements are more forgiving than conventional.
Down payment is the biggest split. VA borrowers put nothing down; conventional buyers need 3-20% depending on their profile. On a $1.2M Redondo Beach home, that's $0 versus $36K-$240K upfront.
Monthly costs favor VA once you're in. No PMI means lower payments even though the funding fee adds to your balance. Conventional borrowers with less than 20% down pay PMI until they refinance or hit equity targets.
Eligibility is the hard line. VA loans require military service verification—you need a Certificate of Eligibility. Conventional loans are open to anyone who qualifies financially.
If you have VA eligibility, use it. Zero down and no PMI beat conventional on almost every deal, especially in Redondo where saving $200K for a 20% down payment takes years. The funding fee is a small price for that access.
Conventional makes sense if you're not military or if you're buying a second home while using VA benefits elsewhere. Some Redondo properties—condos with specific HOA issues—don't pass VA appraisals, forcing conventional as backup.
Run the numbers with both. Your debt-to-income ratio might qualify you for more house with VA since there's no PMI eating into your monthly budget. We compare approval odds across both programs before you commit.
Yes, if the building is VA-approved. Many beachfront complexes qualify, but some don't meet VA condo requirements. We verify approval status before you make an offer.
Conventional typically requires 620 minimum. VA lenders often approve scores in the 580-600 range, though higher scores get better rates.
First-time use with zero down is 2.3% of the loan amount. On a $1.2M home, that's $27,600 rolled into your mortgage. Disabled veterans pay nothing.
Both close in 25-35 days typically. VA appraisals sometimes take longer, but we order them early to keep timelines tight.
No. Conventional loans require PMI below 20% equity. Your only options are putting 20% down, paying points for lender-paid PMI, or using VA benefits if eligible.