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in West Covina, CA
West Covina buyers with military service face a real choice: use VA benefits or go conventional. The right answer depends on your down payment, credit score, and how long you plan to stay.
VA loans eliminate down payments and mortgage insurance. Conventional loans offer faster closings and work for non-primary homes. Both get approvals in West Covina, but the cost structure differs significantly.
Conventional loans require 3-20% down depending on your credit and loan purpose. Put down less than 20% and you pay PMI until you hit 20% equity. Most West Covina lenders approve these in 21-30 days.
Credit standards run stricter than VA. You need 620 minimum for most programs, 680+ for strong rates. Income limits don't exist. You can buy investment properties or second homes with conventional financing.
VA loans require zero down payment regardless of purchase price. You pay a funding fee instead of PMI—typically 2.3% for first-time use, 3.6% for subsequent loans. That fee finances into your loan amount.
Only works for primary residence purchases in West Covina. You need a Certificate of Eligibility proving military service. Credit minimums sit around 580-620 depending on the lender. Sellers sometimes push back on VA offers due to property condition requirements.
Down payment splits these loans apart. VA gives 100% financing to eligible borrowers. Conventional requires 3-20% cash upfront. On a $600,000 West Covina home, that's $0 down with VA versus $18,000-$120,000 with conventional.
Ongoing costs differ too. Conventional charges monthly PMI if you put down less than 20%. VA has no PMI but charges a one-time funding fee. VA typically wins on total cost if you stay in the home long enough to recoup closing costs.
Property standards matter. VA requires homes meet minimum property requirements—no peeling paint, working systems, safe conditions. Conventional accepts properties in any condition. West Covina fixer-uppers often require conventional financing.
Use VA if you qualify and you're buying a primary residence in move-in condition. The zero down payment and no PMI structure saves thousands over the loan term. You're leaving money on the table if you go conventional with VA eligibility intact.
Go conventional if you're buying investment property, need a second home, or the West Covina property won't pass VA inspection. Conventional also wins if you have 20%+ down saved—you skip PMI and avoid the VA funding fee entirely.
Don't assume conventional costs less because the funding fee looks high. Run the numbers. A 2.3% funding fee beats years of monthly PMI in most scenarios. Rates vary by borrower profile and market conditions.
Most lenders accept 580-620 credit scores for VA loans. Conventional typically requires 620 minimum, 680+ for competitive rates.
Conventional typically closes in 21-30 days. VA adds 5-10 days due to property inspection requirements and underwriting steps.
Veterans with service-connected disabilities are exempt. Everyone else pays 2.3-3.6% depending on down payment and prior VA loan use.
VA requires all repairs completed before closing. Conventional lets you buy as-is and fix issues after you own the property.
VA rates run 0.25-0.5% lower on average. Both loan types offer competitive rates to qualified borrowers in West Covina.