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in San Fernando, CA
San Fernando buyers often land between these two government-backed options. Both offer lower barriers than conventional loans, but they serve different borrowers with different trade-offs.
FHA works for anyone who qualifies. VA requires military service but delivers unmatched terms. Your eligibility determines the starting point, but the details matter just as much.
FHA loans accept credit scores as low as 580 with 3.5% down. You'll pay both upfront mortgage insurance (1.75% of loan amount) and annual premiums that typically run 0.55% to 0.85%.
These loans cap at conforming limits for San Fernando—$806,500 for single-family homes in 2024. FHA works well for first-time buyers who lack large down payments but can handle ongoing insurance costs.
You can use gift funds for the entire down payment. Sellers can contribute up to 6% toward closing costs. This flexibility helps buyers who have income but limited savings get to closing.
VA loans require zero down payment for eligible veterans and active-duty service members. No monthly mortgage insurance exists. You pay a one-time funding fee (2.3% for first-time use) that rolls into the loan.
San Fernando qualifies for VA's high-cost limit of $806,500 with no money down. Above that amount, you'd need 25% down on the excess. Credit requirements are flexible—many lenders approve 580+ scores.
Sellers can pay all closing costs and prepaid items. Veterans with service-connected disabilities skip the funding fee entirely. This creates the lowest-cost path to homeownership for those who qualify.
Eligibility separates these programs first. VA demands military service—active duty, veteran status, or qualifying surviving spouse. FHA accepts any borrower who meets credit and income standards.
Cost structure diverges sharply. FHA charges both upfront and monthly mortgage insurance. VA charges a one-time funding fee with no recurring premiums, making it cheaper over time.
Down payment requirements split at zero versus 3.5%. That $28,000 difference on an $800,000 San Fernando home matters when you're building reserves or planning renovations.
Both programs allow seller concessions, but VA permits more—up to 4% for closing costs plus all prepaids. FHA caps seller help at 6% total. Rate differences are minimal since both carry government backing.
If you qualify for VA, use it. The zero down payment and absent mortgage insurance create lower monthly costs and faster equity building. No other program matches these terms for eligible borrowers.
FHA makes sense when VA isn't available or when you're buying a fixer that needs significant repairs. FHA 203(k) renovation loans often beat VA options for properties needing work.
Run the numbers on total monthly payment. FHA's mortgage insurance adds $350-$675 monthly on typical San Fernando purchases. That cost never drops unless you refinance out. VA loans avoid this entirely.
Consider your timeline too. Planning to sell within five years? FHA's insurance matters less. Staying long-term? VA's clean structure compounds savings year after year.
No, you pick one per property. If you're eligible for VA, that's almost always the better financial choice for a primary residence.
Both take 30-45 days typically. VA appraisals can add a few days, but timeline differences are minor with experienced lenders.
Many prefer conventional, but between these two, perception matters more than reality. Strong offers with either loan compete well.
Only by refinancing to conventional once you hit 20% equity. Loans after 2013 carry insurance for the full term otherwise.
No. VA's one-time 2.3% beats FHA's 1.75% upfront plus 0.55-0.85% annually. VA saves money within 2-3 years.
VA appraisals check more items, but both require the home to be safe and habitable. Major issues block either loan type.