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in Madera, CA
Veterans shopping in Madera face a clear choice: use your earned VA benefit or compete with conventional financing. Most active-duty and veteran buyers choose VA when eligible because the zero-down structure beats conventional's 3-20% requirement.
Conventional loans dominate Madera's market for non-military buyers. They offer faster closings and fewer property restrictions, but require stronger down payments and credit profiles than VA loans demand.
Conventional loans require 620+ credit and income verification through W-2s or tax returns. You'll pay PMI on any loan over 80% LTV until you hit 20% equity, adding $100-300 monthly on typical Madera purchases.
These loans close in 21-30 days with minimal property requirements. Sellers prefer them because appraisals rarely kill deals, and there's no VA funding fee negotiation slowing things down.
VA loans let eligible veterans buy with zero down and no monthly mortgage insurance. You'll pay a one-time funding fee of 2.3% for first use, but that rolls into your loan amount rather than hitting you at closing.
Credit standards sit around 580-620 depending on the lender. VA allows higher debt ratios than conventional, often approving borrowers at 50-55% DTI when conventional maxes at 43-45%.
Down payment separates these loans immediately. VA requires zero while conventional demands 3-20% upfront. On a $400,000 Madera home, that's $0 versus $12,000-$80,000 out of pocket before closing costs.
Ongoing costs flip the script. Conventional buyers pay PMI monthly until 20% equity, often $150-250. VA buyers never pay mortgage insurance but fund a 2.3% fee upfront, adding about $9,200 to a $400,000 loan balance.
Choose VA if you're eligible and want to preserve cash. Zero down matters more in California than anywhere else because home prices eat savings fast. The funding fee hurts less than scraping together a conventional down payment.
Go conventional if you're not military-eligible or need to close fast on a competitive listing. Sellers in Madera see conventional offers as cleaner because VA appraisals occasionally flag property conditions that don't bother conventional underwriters.
Yes, but you'd give up zero-down and no-PMI benefits. Most veterans waste money choosing conventional when VA is available.
Some do because VA appraisals are stricter. Strong offers with quick closings overcome most seller hesitation regardless of loan type.
VA rates run 0.25-0.50% lower than conventional. That spread saves $60-100 monthly on typical loans.
Yes if you're disabled or receiving VA disability compensation. Otherwise the 2.3% fee applies to all first-time VA users.
Conventional closes 5-10 days faster on average. VA requires additional certificate verification that adds processing time.