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in Signal Hill, CA
Signal Hill sits on one of the highest points in the Long Beach area, with homes ranging from compact starter properties to larger single-family residences. Both FHA and VA loans offer government backing, but they serve different borrowers with different benefits.
If you're military-affiliated, VA typically beats FHA on every major term. For civilian buyers with limited savings, FHA opens doors that conventional loans keep closed.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% to 0.85% depending on your down payment and loan term.
These loans work well for first-time buyers in Signal Hill who have stable income but limited cash savings. Maximum loan limits in Los Angeles County are $644,000 for single-family homes, covering most properties in the area.
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 your service type and whether it's your first VA loan use.
Lenders typically want 620+ credit scores, though the VA itself sets no minimum. These loans accommodate higher debt ratios than conventional programs and don't penalize you for using the full purchase price as your loan amount.
The biggest split is upfront cost versus ongoing cost. FHA requires 3.5% down but charges monthly insurance that typically never drops off. VA requires nothing down but hits you with a funding fee that most borrowers roll into the loan.
On a $500,000 Signal Hill home, FHA needs $17,500 down plus $175 monthly insurance. VA needs $0 down but adds $12,500 to your loan balance as a funding fee. Over time, VA's lack of monthly insurance saves significantly more.
If you qualify for VA benefits, use them. The absence of monthly mortgage insurance and zero down requirement make it the stronger option in almost every scenario. The funding fee looks expensive upfront, but it's far cheaper than years of FHA premiums.
FHA makes sense when you're civilian, have challenged credit, or already used your VA entitlement on another property. It's a solid path to homeownership in Signal Hill when VA isn't on the table.
Yes, if you have remaining entitlement or pay off the first VA loan. Many veterans use VA loans multiple times throughout their lives.
Only if you put down 10% or more, and even then you pay it for 11 years. Most FHA borrowers pay it for the loan's full term.
Both require homes to meet safety and livability standards. VA appraisals can be slightly more detailed, but neither program is dramatically harder on property condition.
Veterans with service-connected disabilities are exempt. Otherwise, the fee applies but can be financed into the loan amount.
FHA accepts 580 officially, though some lenders want 600+. VA has no minimum, but most lenders require 620 for approval.