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in San Dimas, CA
San Dimas buyers face a clear choice between conventional and VA financing. Veterans and service members get zero-down VA loans, while everyone else uses conventional mortgages with standard down payments.
The right loan depends on your military status and cash reserves. VA loans eliminate down payments and mortgage insurance, but conventional loans offer more property type flexibility and work for non-military buyers.
Conventional loans are standard mortgages not backed by government agencies. You need 620+ credit and 3-20% down depending on whether you choose conforming or non-conforming financing.
These loans work for any property type in San Dimas, from condos to single-family homes. With 20% down, you avoid private mortgage insurance entirely, lowering your monthly payment.
Rates vary by borrower profile and market conditions. Stronger credit scores and larger down payments unlock better pricing, sometimes beating government-backed options.
VA loans require zero down payment and come with government backing. You must be an eligible veteran, active-duty service member, or qualifying surviving spouse to use this program.
There's no monthly mortgage insurance, which saves hundreds per month compared to low-down conventional loans. You pay a one-time VA funding fee instead, typically 2.3% for first-time use with zero down.
VA loans accept lower credit scores than conventional financing. Lenders often approve 580+ credit, though most prefer 620 or higher for competitive rates.
Down payment separates these loans most clearly. VA requires nothing upfront while conventional needs 3-20%, meaning a San Dimas buyer purchasing a $700,000 home needs $21,000-$140,000 saved for conventional but $0 for VA.
Mortgage insurance costs differ dramatically. Conventional buyers pay $100-$300 monthly with less than 20% down, while VA buyers pay zero monthly insurance regardless of down payment.
Property restrictions matter for some buyers. VA won't finance fixer-uppers or properties failing safety inspections, while conventional loans handle these with fewer limitations.
Seller resistance exists with VA loans in competitive markets. Some San Dimas sellers prefer conventional offers because VA appraisals can be stricter and require repairs before closing.
Use VA if you're eligible and buying a move-in ready home. The zero-down benefit and lack of mortgage insurance save tens of thousands over the loan life, even after paying the funding fee.
Choose conventional if you're not military-eligible or buying a fixer-upper. You'll need cash saved for down payment and closing costs, but you get more property flexibility and stronger offers in bidding wars.
Some eligible veterans still pick conventional loans. If you have 20%+ saved and want to preserve VA eligibility for a future purchase, conventional lets you avoid the funding fee while eliminating mortgage insurance.
Yes, VA loans work throughout San Dimas for properties meeting safety standards. The home must be your primary residence and pass a VA appraisal.
Conventional requires 620 minimum, though 680+ gets better rates. VA often approves 580+ credit, but most lenders prefer 620 or higher.
First-time VA users pay 2.3% with zero down, so $16,100 on a $700,000 loan. You can roll this into your mortgage instead of paying upfront.
Conventional typically closes 2-3 days faster because VA requires additional property inspections. Both usually complete within 30 days with experienced lenders.
Yes, put 20% down to eliminate private mortgage insurance completely. Below 20% down, you'll pay $100-$300 monthly until reaching 20% equity.
Some prefer conventional in competitive markets due to fewer appraisal conditions. Strong VA pre-approvals with experienced lenders often compete equally well.