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in Santa Fe Springs, CA
Both FHA and VA loans offer government backing in Santa Fe Springs, but they serve different borrowers. FHA works for anyone who qualifies; VA requires military service.
Most buyers in Los Angeles County face the same choice: low down payment with mortgage insurance or zero down with stricter eligibility. Your service history decides which path you can take.
FHA loans let you put down 3.5% if your credit score hits 580. Below that, you need 10% down. You'll pay mortgage insurance for the life of most FHA loans.
Loan limits in Los Angeles County go up to $766,550 for single-family homes. FHA accepts credit scores as low as 500 with the higher down payment. Debt ratios can stretch to 50% or higher with strong compensating factors.
VA loans require zero down payment and no monthly mortgage insurance. You pay a one-time funding fee instead, which ranges from 1.4% to 3.6% depending on down payment and service type.
Most lenders want a 620 credit score, though VA itself sets no minimum. Loan limits don't apply if you have full entitlement. Debt ratios can exceed 50% with residual income requirements met.
The funding fee versus mortgage insurance split defines the cost difference. FHA charges 1.75% upfront plus 0.55%-0.85% annually. VA charges 1.4%-3.6% once with no monthly premium.
Eligibility creates the biggest divide. Any W-2 earner or self-employed borrower can use FHA. VA requires a Certificate of Eligibility proving military service, active duty status, or surviving spouse qualification.
If you qualify for VA, use it. Zero down and no monthly mortgage insurance beat FHA economics in almost every scenario. The funding fee costs less over time than years of FHA premiums.
FHA makes sense when VA isn't available or you've exhausted your entitlement. It accepts lower credit scores than most VA lenders and works for investment properties with owner occupancy requirements that VA won't touch.
Not on the same property. You can have one of each on different properties if you meet occupancy rules and have remaining VA entitlement.
VA typically costs less monthly because there's no mortgage insurance. FHA payments include 0.55%-0.85% annual insurance that adds $250-$400 monthly on a $500k loan.
Yes. FHA allows up to 6% seller concessions. VA allows up to 4% but permits seller-paid funding fees and other costs FHA won't cover.
FHA accepts scores as low as 500 with 10% down. Most VA lenders require 620+, though VA itself sets no minimum credit requirement.
Yes, if you qualify for VA. Many borrowers start with FHA then refinance to VA once they establish military eligibility or restore entitlement.