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in Chowchilla, CA
Both FHA and VA loans help Chowchilla buyers with limited cash reserves get into homes. The right choice depends entirely on your military status and how much you can put down.
FHA loans work for anyone who qualifies. VA loans require military service but offer superior terms. Most eligible veterans skip FHA entirely once they understand the VA advantage.
FHA loans require 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that last the loan's life.
Maximum loan limits in Madera County let you borrow up to conforming amounts on most properties. FHA accepts recent credit issues better than conventional loans. Sellers can contribute up to 6% toward your closing costs.
VA loans require zero down payment for eligible veterans and active military. You pay a one-time funding fee instead of ongoing mortgage insurance. That funding fee ranges from 1.4% to 3.6% based on your service type and whether you've used the benefit before.
VA loans accept credit scores down to 620 at most lenders, though some go lower. The program caps what you pay for appraisals and limits certain closing costs. You can use your VA benefit repeatedly throughout your lifetime.
The funding fee versus mortgage insurance split creates the biggest cost difference. FHA charges 0.55% to 0.85% of your loan amount annually in mortgage insurance. VA charges a one-time fee you can roll into the loan, then nothing monthly.
Down payment separates these loans most visibly. FHA demands 3.5% minimum while VA accepts zero. On a $350,000 Chowchilla home, that's $12,250 you need for FHA versus nothing for VA. Credit requirements run similar, with both programs accepting scores conventional loans reject.
If you qualify for a VA loan, use it. The zero down requirement and absence of mortgage insurance beat FHA on every deal I've run. Veterans choosing FHA instead leave thousands on the table annually.
FHA makes sense only when VA isn't an option. Non-military buyers with limited savings rely on FHA's 3.5% down to get into Chowchilla homes. The mortgage insurance costs more over time, but it opens doors that stay closed without it.
No. VA loans require active duty service, veteran status, or qualifying surviving spouse designation. Non-military buyers use FHA or conventional loans instead.
VA loans cost less monthly because they skip mortgage insurance. FHA adds $200-300 monthly in insurance on typical Chowchilla home prices.
Both require the property to meet specific safety and condition standards. VA appraisals scrutinize more details than FHA, occasionally flagging repair items FHA would pass.
Only by refinancing to a different loan type. FHA loans originated after 2013 carry mortgage insurance for the entire loan term.
Processing times run similar. Both take 30-40 days typically. VA appraisals occasionally take longer to schedule than FHA appraisals.