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in Walnut, CA
Walnut buyers often choose between conventional and VA loans. Each has distinct approval rules, down payment requirements, and cost structures that affect your buying power.
VA loans give eligible veterans and service members zero-down financing. Conventional loans offer more flexibility for buyers who don't qualify for VA benefits but have strong credit and savings.
Conventional loans require 620+ credit and at least 3% down. You'll pay PMI until you reach 20% equity, but you can cancel it once you hit that threshold.
These loans work for any property type in Walnut. There's no lifetime limit on how many conventional loans you can have, making them ideal for investors or buyers with multiple properties.
Rates depend on credit score, down payment size, and debt ratios. Putting 20% down eliminates PMI and usually unlocks better pricing from lenders.
VA loans require zero down payment for eligible veterans and active-duty service members. You pay a one-time funding fee instead of monthly PMI, typically 2.3% for first-time users with no down payment.
These loans have stricter property standards than conventional. The VA appraisal checks safety items like roof condition and HVAC functionality, which can delay or kill deals on fixer-uppers.
Sellers pay all buyer closing costs in many VA transactions. That limits your appeal in competitive Walnut markets where multiple offers are common.
The down payment gap is the biggest difference. VA loans require nothing down, while conventional needs 3-20%. That's $30,000-$200,000 upfront for a $1M Walnut home on conventional.
VA loans charge a one-time funding fee but no monthly PMI. Conventional charges monthly PMI until you hit 20% equity. Over five years, PMI costs roughly equal the VA funding fee for most borrowers.
Credit requirements differ too. VA lenders typically accept 580-600 scores. Conventional starts at 620 and gives better rates above 740. Debt ratio limits are also looser on VA loans.
Use VA if you're eligible and buying a move-in ready home. The zero-down benefit outweighs seller resistance in most cases, especially if you're tight on cash for closing.
Choose conventional if you need flexibility on property condition or want to avoid VA funding fees. It's also your only option for investment properties or if you're not military-eligible.
Some Walnut buyers use both. Get a VA loan for your primary residence, then conventional for a rental property. We shop both programs across 200+ lenders to find your best rate and terms.
Yes, but the condo complex must be VA-approved. Many Walnut complexes qualify, but some HOAs haven't completed the approval process.
VA loans typically price 0.25-0.50% lower than conventional. Rates vary by borrower profile and market conditions.
Some sellers prefer conventional in multiple-offer situations. VA appraisals are stricter, which can delay closing or require repair negotiations.
You can refinance a conventional loan into a VA loan later. This makes sense if rates drop or you want to eliminate PMI.
VA lenders typically accept 580-600 scores. Conventional requires 620 minimum, with better pricing at 740+.
First-time VA buyers pay 2.3% with zero down. You can finance this fee into the loan amount rather than paying cash upfront.