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in San Dimas, CA
Both FHA and VA loans offer lower barriers to homeownership than conventional financing. The main difference is eligibility: VA loans require military service but offer better terms.
In San Dimas's competitive Los Angeles County market, both programs help buyers who lack 20% down. Your service history determines which option you qualify for.
FHA loans accept 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums between 0.55% and 1.05%.
These loans work for first-time buyers and those rebuilding credit. The insurance stays for the loan's life on purchases with less than 10% down.
Sellers can contribute up to 6% toward closing costs. Property requirements include FHA appraisal standards that sometimes flag older San Dimas homes.
VA loans require zero down payment and no monthly mortgage insurance. You'll pay a one-time funding fee ranging from 1.4% to 3.6% depending on military category and down payment.
Credit score minimums typically start at 620 with most lenders. Debt-to-income ratios can stretch beyond conventional limits with strong residual income.
The VA appraisal includes property condition requirements. Sellers can pay all closing costs, and the funding fee can be rolled into the loan amount.
VA loans beat FHA on monthly costs due to zero mortgage insurance. A $600,000 San Dimas purchase with FHA at 3.5% down costs about $360/month more than VA at zero down.
FHA accepts lower credit scores and doesn't require military service. VA offers better long-term value but only works for eligible veterans and service members.
Both programs limit how much you can borrow based on county limits. Los Angeles County's 2024 FHA limit is $644,000, while VA has no set limit with full entitlement.
Use VA if you're eligible, period. The zero down payment and no mortgage insurance create massive savings over the loan's life.
Choose FHA if you don't qualify for VA benefits. It's the most accessible low-down-payment option for civilian buyers with credit challenges.
Some veterans still use FHA when buying multi-unit properties that exceed VA appraisal requirements. We see this occasionally with older San Dimas investment properties.
Yes, VA loans can be used multiple times if you have remaining entitlement or pay off previous VA loans. Many veterans use the benefit repeatedly throughout their lives.
VA loans typically price 0.25% to 0.50% lower than FHA rates. Rates vary by borrower profile and market conditions, but VA consistently offers better pricing.
Both require the condo project to be approved by FHA or VA respectively. VA approval is typically more restrictive than FHA for San Dimas developments.
Most VA lenders require 620 minimum, though the VA itself has no score requirement. FHA more readily accepts scores in the 580-619 range.
Both take similar timeframes, typically 30-45 days. VA appraisals can sometimes add a few days due to stricter property requirements in older neighborhoods.