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in Fairfax, CA
Both FHA and VA loans help Fairfax buyers with lower barriers to entry than conventional mortgages. The right choice depends entirely on your military status and how much cash you can bring to closing.
FHA works for anyone who qualifies, while VA requires military service. That single difference changes everything about down payments, mortgage insurance, and what you'll pay over the loan's life.
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% plus annual premiums between 0.55% and 1.05% for the loan's life.
These loans work well in Fairfax because they accept debt ratios up to 57% with compensating factors. Sellers know FHA appraisals require more property condition scrutiny than conventional loans.
The big trade-off is mortgage insurance that never drops off unless you refinance. That monthly cost adds up over decades, making FHA most useful as a short-term stepping stone.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee between 1.4% and 3.6%, which can be rolled into the loan amount.
Sellers in Marin County sometimes worry about VA appraisals, but the process isn't dramatically different from FHA. The real advantage is keeping more cash in your pocket at closing.
Credit requirements are flexible, though most lenders want 620 or higher. VA loans also cap your debt ratio around 41% unless you have strong compensating factors.
The down payment gap is massive. FHA needs 3.5% while VA needs nothing. On a $900,000 Fairfax home, that's $31,500 versus zero at closing.
Monthly costs diverge even more. FHA charges permanent mortgage insurance that can run $400-700 monthly. VA has no monthly insurance, just the upfront funding fee that gets financed.
Eligibility draws the clearest line. Veterans with discharge papers get VA, everyone else considers FHA. If you qualify for both, VA wins on cost in almost every scenario.
If you're military-eligible, VA beats FHA on every financial metric. The only exception is if you've exhausted your VA entitlement or need to close in under 25 days on a strict timeline.
Non-veterans with limited savings choose FHA when conventional loans aren't within reach. You're accepting higher monthly costs to get into a home now rather than waiting years to save 20% down.
Some Fairfax buyers use FHA strategically for 12-24 months, then refinance to conventional once they hit 20% equity. This kills the mortgage insurance and locks a better rate if the market cooperates.
Yes, but it rarely makes sense. VA's zero down and no monthly insurance beat FHA's 3.5% down and permanent premiums in nearly every situation.
Some prefer conventional financing, but both loan types are common in Marin County. Strong offers with quick closings compete regardless of loan type.
For the entire loan term with 3.5% down. The only way to remove it is refinancing to conventional or VA once you reach 20% equity.
First-time users pay 2.3% with zero down, 1.65% with 5% down. Subsequent use costs 3.6% with zero down, waived for disabled veterans.
Both take 30-45 days typically. VA can add a week if the appraiser needs to re-inspect property condition issues flagged in the report.
Only if the complex appears on the FHA or VA approved list. Many Marin County condos aren't approved, limiting your options to conventional financing.