Question 1

Can I get a VA loan if my credit score is below 620?

Accepted Answer

Yes. VA sets no credit floor. Lenders may require 620, but VA itself doesn't. If your score is lower, shop lenders who specialize in VA loans — they often approve borrowers conventional and FHA turn down.

Question 2

Will I pay mortgage insurance forever on an FHA loan?

Accepted Answer

Yes. FHA mortgage insurance (MIP) stays for the life of the loan, even after you reach 20% equity. VA funding fees are one-time only. This is the biggest long-term cost difference between the two programs.

Question 3

How much does a VA funding fee cost?

Accepted Answer

VA funding fees typically range from 1.4% to 3.6% of the loan amount, depending on your down payment and whether you've used VA benefits before. It rolls into the loan, so you don't pay it upfront.

Question 4

Can I use FHA if I'm self-employed?

Accepted Answer

Yes. FHA is actually easier for self-employed buyers than conventional loans. You'll need two years of tax returns and a profit-and-loss statement, but FHA lenders move faster than most alternatives.

Question 5

Do both loans work for Santa Clarita homes over $1 million?

Accepted Answer

Yes. Both FHA and VA reach $1,249,125 in Los Angeles County for 2026. Homes above that limit need jumbo financing or a larger down payment on conventional.

FHA vs VA loans in Santa Clarita: which works for you?