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in Whittier, CA
Both FHA and VA loans help Whittier buyers get into homes with less cash upfront than conventional financing. The main split comes down to military service — VA loans require it, FHA loans don't.
Each loan has distinct trade-offs around down payment size, mortgage insurance, and credit flexibility. Your service history and cash reserves usually decide which path makes sense.
FHA loans let you buy with just 3.5% down if your credit score hits 580. Whittier's mix of starter homes and established neighborhoods makes this a common choice for first-time buyers stretching to afford the area.
You'll pay both upfront and monthly mortgage insurance for the loan's life on most FHA deals. That ongoing premium adds roughly $200-300 monthly on a $500k loan, which matters when comparing total costs.
VA loans require zero down payment and charge no monthly mortgage insurance. If you're eligible through military service, this usually beats FHA math — you skip the down payment and avoid permanent insurance premiums.
The VA funding fee replaces traditional mortgage insurance, typically 2.3% on first-time use with no down payment. You can roll this into your loan amount rather than paying cash at closing.
The cash-to-close gap is massive. FHA needs 3.5% down plus closing costs — call it $25k-30k on a $600k Whittier home. VA buyers often close with under $5k out of pocket since they finance the funding fee.
Monthly payments tilt heavily toward VA loans too. Skip the FHA mortgage insurance and you save $250-400 monthly on typical loan amounts. Over 30 years that's six figures in premiums you never pay.
Use VA if you're eligible — the savings over FHA are too large to ignore unless the property fails VA appraisal standards. The only exceptions are disabled veterans exempt from the funding fee who still lack down payment funds.
Choose FHA when you don't qualify for VA benefits or when buying a fixer-upper that won't pass VA inspection requirements. Some older Whittier homes need repairs before they meet VA standards, making FHA the faster path to closing.
No, VA loans require you to occupy the home as your primary residence. You can buy a multi-unit property and rent out extra units, but you must live in one unit yourself.
Only if you put down 10% or more — then it drops after 11 years. With the standard 3.5% down, you pay mortgage insurance for the full 30-year term.
FHA typically closes slightly faster because VA appraisals include stricter property inspections. Budget 30-35 days for FHA, 35-40 days for VA in most cases.
Yes, if you have remaining VA entitlement. Some veterans use VA for a primary home and FHA for a second property, though this is uncommon.
Many sellers worry VA appraisals will kill deals on older homes. Strong pre-approval and quick closing timelines matter more than loan type in most negotiations.