Question 1

Can I avoid PMI on a conventional loan in Torrance?

Accepted Answer

Yes — put 20% down at closing and PMI never applies. Below 20%, PMI is required. It cancels automatically once you reach 80% LTV through payments or appreciation.

Question 2

Do VA loans have a rate advantage over conventional?

Accepted Answer

Yes. VA rates typically run 0.25% to 0.5% lower than conventional. The government guarantee lets lenders price them tighter. Over a 30-year loan, that difference saves tens of thousands.

Question 3

What's the VA funding fee and can I avoid it?

Accepted Answer

The funding fee ranges from 1.25% to 3.3% of the loan amount. It's rolled into your loan balance. Surviving spouses and disabled veterans are exempt. Most buyers find it cheaper than conventional PMI over time.

Question 4

Is conventional or VA better for a Torrance purchase above $1,000,000?

Accepted Answer

Both work. The 2026 conforming limit is $1,249,125, so conventional stays available. VA has no loan-amount cap. If you're VA-eligible, the rate advantage and zero down usually win.

Question 5

What credit score do I need for each program?

Accepted Answer

Conventional: 620 minimum, but 740+ gets better rates. VA: typically 580, though some lenders go lower. VA's flexibility on credit is a real advantage for buyers rebuilding.

Conventional vs VA Loans in Torrance: Which Fits Your Purchase?