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in South Gate, CA
South Gate homebuyers choosing between conventional and VA financing face different down payment requirements and rate structures. Veterans often qualify for better terms, while non-military buyers stick with conventional options.
Both loan types work well for South Gate's single-family homes and condos. Your military service status and available cash determine which path makes sense.
Conventional loans require 3% down for first-time buyers or 5% for repeat buyers. You'll pay PMI until you reach 20% equity. Credit scores start at 620, but rates improve significantly above 700.
These loans let you finance up to $806,500 in LA County as of February 2026. Debt-to-income ratios cap at 50% with strong credit. Down payment can come from savings, gifts, or sale proceeds from another property.
VA loans require zero down payment for eligible veterans and active-duty service members. No monthly mortgage insurance exists. You pay a one-time funding fee — typically 2.15% for first use, 3.3% for subsequent purchases.
These loans go up to $806,500 in LA County without a down payment. Rates run 0.25-0.50% lower than conventional. Disabled veterans get the funding fee waived completely.
Down payment separates these programs most. VA financing requires nothing upfront. Conventional demands at least 3%, meaning $15,000+ on a $500,000 South Gate home.
VA borrowers avoid PMI entirely but pay the funding fee once. Conventional buyers pay PMI monthly until hitting 20% equity — usually 3-7 years of extra payments. Rate structures favor VA by roughly half a point.
Use VA benefits if you qualify — the zero-down feature and lower rates beat conventional on almost every deal. The funding fee costs less over time than years of PMI payments.
Conventional makes sense for non-veterans or when VA entitlement is tied up in another property. Buyers with 20% down avoid PMI and get competitive rates. Properties needing work may not pass VA appraisal standards.
Yes, but you'd give up zero-down benefits and lower rates. Conventional makes sense only when buying a property that won't pass VA appraisal or when rates somehow invert.
VA saves roughly $15,000 in down payment plus $400-500 monthly by avoiding PMI. The funding fee adds $10,750 upfront but you still come out ahead within two years.
Yes, but VA requires the condo project to be VA-approved. Conventional has fewer condo restrictions and processes faster for non-approved buildings.
You'd refinance into a VA loan, not switch. That makes sense when rates drop or you want to eliminate PMI, but you'll pay closing costs again.
Conventional typically closes 3-5 days faster because VA appraisals take longer and include repair requirements. Timeline matters less than choosing the right loan structure.