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in South El Monte, CA
South El Monte buyers often wrestle with this question: use VA benefits or go conventional? The right choice depends on your down payment situation and how long you plan to own the property.
VA loans skip down payments entirely but charge an upfront funding fee. Conventional loans need at least 3% down but avoid that fee. In Los Angeles County's competitive market, knowing which route saves money matters.
Conventional loans give you the most flexibility if you have cash saved. You can put down 5%, 10%, or 20% depending on what works for your budget. Less than 20% down means you'll pay PMI until you hit that threshold.
Credit matters more here than with VA. Most lenders want 620 minimum, but 680+ gets you better rates. The upside: no funding fee, and you can drop PMI once you reach 20% equity through appreciation or paydown.
VA loans are unbeatable if you qualify and don't have down payment savings. You'll pay a one-time funding fee — 2.15% for first-time use with zero down. That gets rolled into the loan, so your closing costs stay low.
No monthly mortgage insurance ever, regardless of down payment. That's a huge monthly savings compared to conventional with PMI. Credit requirements are more lenient too, though most lenders still want 580-620 minimum.
The math shifts based on your down payment. With 10% or more down, conventional often wins because you avoid the funding fee. With less than 10% down, VA's lack of monthly PMI usually saves more over time.
VA loans require the property to meet stricter condition standards. If you're buying a South El Monte fixer, conventional gives you more options. VA also caps what sellers can charge in fees, which can complicate negotiations in competitive situations.
Use VA if you have little or no down payment saved. The funding fee hurts, but skipping PMI saves $100-300 monthly on a typical South El Monte purchase. That offsets the upfront cost within a few years.
Go conventional if you can put down 10%+ or you're buying a property that needs work. You'll pay less upfront and have more appraisal flexibility. First-time buyers with down payment assistance should also lean conventional — most programs don't stack with VA.
Yes, your VA entitlement restores after you sell and pay off the loan. You can use it repeatedly throughout your lifetime as long as you meet occupancy requirements.
Not always, but typically yes. VA allows 580-620 with most lenders. Conventional usually starts at 620, with better pricing at 680+.
Conventional usually edges out VA by a few days. VA appraisals take longer due to stricter property condition reviews required by the program.
Yes, if you're receiving VA disability compensation or you're a surviving spouse. Otherwise, you can reduce it by making a down payment of 5% or more.
No, VA rates run lower on average. The government guarantee lets lenders charge less even with zero down payment required.