Question 1

Can I use VA and FHA loans for investment properties in South El Monte?

Accepted Answer

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.

Question 2

Which loan has lower interest rates in 2026?

Accepted Answer

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.

Question 3

Do both programs allow gifts for down payment and closing costs?

Accepted Answer

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%.

Question 4

How do credit score requirements compare between FHA and VA?

Accepted Answer

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.

Question 5

Can I refinance from FHA to VA or vice versa later?

Accepted Answer

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.

FHA vs VA Loans in South El Monte: Which Government-Backed Option Fits Your Situation?