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in Sierra Madre, CA
Sierra Madre attracts both civilian buyers and military families. The right loan depends on your eligibility and down payment position.
VA loans offer zero down for qualified veterans. Conventional loans require 3-5% down but work for any buyer with solid credit.
Conventional loans work through Fannie Mae and Freddie Mac guidelines. You need 620 minimum credit, though 740+ unlocks the best rates.
Put down 3% with a first-time buyer program or 5% as a repeat buyer. Drop PMI once you hit 20% equity through payments or appreciation.
Loan limits reach $806,500 in Los Angeles County for 2024. Higher balances require jumbo financing with stricter qualifying rules.
VA loans guarantee mortgages for veterans and active-duty service members. You pay zero down and avoid monthly mortgage insurance entirely.
The VA charges a one-time funding fee of 2.3% for first use. Roll it into your loan amount or pay upfront. Disabled veterans pay nothing.
Same $806,500 limit applies in Los Angeles County. Above that, you need a jumbo VA loan with a 25% down payment on the excess.
VA loans win on upfront costs but lose on property restrictions. Lenders scrutinize condition more strictly and sellers sometimes balk at VA appraisals.
Conventional loans cost more upfront with PMI. You gain flexibility on property type and face fewer seller concerns during offers.
Rates vary by borrower profile and market conditions. VA rates run 0.25-0.5% lower on average, though stellar credit can make conventional competitive.
Choose VA if you qualify and plan to occupy the home. Zero down and no PMI beats conventional math for most veterans, even with the funding fee.
Go conventional if you're buying investment property or a second home. VA restricts use to primary residences only.
Conventional makes sense when competing in tight markets. Some Sierra Madre sellers prefer conventional buyers over VA due to appraisal concerns.
VA requires properties meet minimum standards at closing. Major repairs must be completed before you can use VA financing.
Expect 0.5-1.5% of your loan amount annually with less than 20% down. Actual cost depends on credit score and down payment size.
Not anymore. Most VA loans close in 30 days when you work with experienced lenders familiar with VA requirements.
Yes. Your entitlement restores after selling or refinancing out of the previous VA loan.
VA limits certain lender fees, but the funding fee adds cost. Total closing costs end up similar between both options.
Some prefer conventional, but strong offers overcome loan type concerns. A pre-approval and quick close timeline matter more.