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in Rolling Hills Estates, CA
Rolling Hills Estates sits in one of LA County's pricier pockets. Both FHA and VA loans offer government backing, but they serve different borrowers with different requirements.
FHA loans work for most buyers who need flexible credit. VA loans deliver better terms but only veterans and active-duty service members qualify.
FHA loans require just 3.5% down with a 580 credit score. You can qualify with a 500 score if you put down 10%, though most lenders set higher overlays.
The trade-off is mortgage insurance on every FHA loan. You pay 1.75% upfront plus annual premiums between 0.55% and 1.05% based on your down payment and loan term.
FHA caps how much you can borrow based on county loan limits. In Los Angeles County, that's $644,000 for a single-family home in 2024.
VA loans require zero down payment and charge no monthly mortgage insurance. That's a massive advantage in high-cost areas where saving 20% takes years.
You pay a one-time funding fee between 1.4% and 3.6% depending on your down payment and whether you've used the benefit before. Veterans with service-connected disabilities get this fee waived.
VA doesn't set a maximum loan amount, but guarantees only a portion. In Los Angeles County, you can borrow above $766,550 without a down payment if your entitlement covers it.
Down payment separates these programs most clearly. FHA needs 3.5% minimum while VA allows zero down for eligible borrowers.
Monthly costs differ significantly. FHA charges ongoing mortgage insurance that rarely drops off. VA has no monthly MI, just a one-time funding fee you can roll into the loan.
Credit flexibility tilts toward FHA. VA lenders typically want 620+ scores even though the program has no official minimum. FHA officially accepts 580 or even 500 with larger down payments.
If you qualify for VA based on military service, use it. The zero down payment and no mortgage insurance save significant money over the loan's life.
FHA makes sense when you don't have military service or when credit challenges make conventional loans unavailable. It's also useful if you're buying a fixer-upper since FHA 203k rehab loans exist.
Some veterans still choose FHA for properties VA won't approve or when the funding fee exceeds FHA's mortgage insurance costs. Run the numbers on both before deciding.
Yes, both programs work here. VA offers better terms but requires military service. FHA is available to anyone meeting credit and income requirements.
VA typically costs less monthly due to no mortgage insurance. FHA requires ongoing MI premiums that add $200-400 monthly on most loans.
FHA officially accepts 580 scores. VA has no minimum but most lenders want 620+. FHA is more accessible for challenged credit.
Veterans with service-connected disabilities get the fee waived. Otherwise, you'll pay 1.4% to 3.6% based on down payment and prior use.
VA allows higher loan amounts without down payments. FHA caps at $644,000 in LA County, requiring conventional loans above that.