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in Westlake Village, CA
Both FHA and VA loans offer government backing, but they serve different borrowers. FHA loans work for anyone with steady income and modest credit. VA loans are reserved for military members and veterans.
Westlake Village's housing stock skews toward single-family homes above conforming limits. Either loan can work here, but knowing which one saves you money depends on your service history and down payment capacity.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% and annual premiums between 0.55% and 1.05% depending on loan amount and down payment.
These loans cap at $1,149,825 in Los Angeles County for 2024. That covers most Westlake Village homes, though larger estates will need jumbo financing. FHA works well for first-time buyers without military service who need flexible underwriting.
VA loans require zero down payment and charge no monthly mortgage insurance. You'll pay a one-time funding fee from 1.4% to 3.6% based on down payment and whether you've used the benefit before. Disabled veterans get the fee waived entirely.
VA loans in Los Angeles County go up to $1,149,825 with no down payment. Above that, you'll need 25% down on the amount exceeding the limit. Credit score minimums vary by lender, but most accept 620 or higher.
The down payment gap matters most. FHA needs 3.5% minimum while VA requires nothing. On a $900,000 Westlake Village home, that's $31,500 you either need or don't.
Monthly costs diverge sharply too. FHA charges ongoing mortgage insurance that never drops off. VA has no monthly insurance premium. Over 30 years on that same $900,000 loan, FHA's insurance costs roughly $220,000 more than VA's one-time funding fee.
If you qualify for VA, use it. The no-down-payment structure and absence of monthly insurance premiums beat FHA by tens of thousands over the loan term. The only exception is if you're buying far above county limits and can't cover the 25% down on the excess.
FHA makes sense when VA isn't an option. It's the next-best government loan for buyers who need low down payments and flexible credit standards. Just factor in that monthly insurance payment when calculating affordability.
No, VA loans require military service. Surviving spouses of service members killed in action may qualify with a Certificate of Eligibility from the VA.
Only if you put down 10% or more, and even then you pay it for 11 years. With 3.5% down, you pay insurance for the full loan term.
VA inspections are tougher. They flag peeling paint, missing handrails, and roof issues FHA might overlook. Budget for potential repairs before close.
Yes, if the complex is FHA or VA approved. Most newer developments get approval, but check the HUD and VA condo lists before writing an offer.
FHA accepts 580 officially, though many lenders want 620. VA has no official floor, but most lenders set minimums around 620 as well.