Loading
in South El Monte, CA
South El Monte buyers often choose between FHA and VA loans for their low barriers to entry. Both skip the steep down payments conventional loans demand, but they serve different borrower profiles.
FHA loans work for anyone who qualifies—first-timers, repeat buyers, or investors buying up to four units. VA loans require military service but deliver unmatched terms for those who've earned the benefit.
FHA loans let you put down just 3.5% with a credit score of 580 or higher. Below that, you'll need 10% down. Monthly mortgage insurance premiums (MIP) run 0.55% annually on most loans, plus an upfront premium of 1.75% rolled into your balance.
Sellers can cover up to 6% of your closing costs, and you can finance repairs with an FHA 203k. Los Angeles County's 2026 loan limit sits at $644,000 for a single-family home—enough for most South El Monte properties.
VA loans require no down payment and no monthly mortgage insurance. You pay a one-time funding fee—typically 2.15% for first-time use, 3.3% for subsequent loans—unless you're exempt due to disability. That fee gets financed into your loan amount.
The 2026 VA loan limit in Los Angeles County is $766,550 for zero-down financing. Above that, you'll need a down payment to cover the difference. VA loans also cap your total closing costs and let sellers pay all of them if they agree.
The biggest split: VA loans eliminate monthly mortgage insurance, while FHA charges it for the loan's life. On a $500,000 loan, that's roughly $229 more per month with FHA. Over 30 years, you're looking at an $82,000 difference.
VA also lets you borrow more in South El Monte—$766,550 versus $644,000 with FHA. If you're buying above the FHA limit, VA keeps you at zero down where FHA would require 20% on the excess. Credit requirements flex slightly looser with FHA, but most VA lenders approve scores in the low 600s anyway.
If you're a veteran or active-duty service member, VA wins on cost and flexibility. You'll pay less monthly, borrow more with zero down, and skip mortgage insurance entirely. There's no reason to choose FHA when you qualify for VA benefits.
FHA makes sense when you don't have military service or you're buying a multi-unit property to house-hack. It's also the fallback if your credit sits below what VA lenders approve—though that gap is narrow. For South El Monte buyers without VA eligibility, FHA opens homeownership at 3.5% down.
No for VA—it's primary residence only. FHA allows up to four-unit properties if you live in one unit, making it the better choice for house-hacking investors.
VA loans typically price 0.25% to 0.50% lower than FHA due to government backing and no mortgage insurance risk. Rates vary by borrower profile and market conditions.
Yes. FHA and VA both accept gift funds from family members. VA also allows sellers to cover all your closing costs, while FHA caps seller concessions at 6%.
FHA sets a 580 minimum for 3.5% down. Most VA lenders approve 620+, though the VA itself has no score floor—it's up to individual lenders.
Yes, if you meet the new loan's eligibility. Veterans often refinance FHA loans into VA to drop mortgage insurance. The reverse makes no financial sense.