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in Fort Bragg, CA
Fort Bragg buyers often debate conventional versus VA financing when shopping this coastal market. VA loans win on zero down payment and no PMI, but conventional loans work for everyone and often close faster.
Your military status decides eligibility for VA. But even eligible veterans sometimes choose conventional for specific property types or when competing against cash offers.
Conventional loans require 3-20% down depending on your credit and loan amount. You'll pay PMI until you hit 20% equity, which adds $100-300 monthly on most Fort Bragg purchases.
Lenders want 620+ credit for minimum down payments, though 740+ gets you the best rates. These loans handle condos, investment properties, and non-standard homes better than VA in many cases.
VA loans require zero down and never charge PMI. You pay a one-time funding fee of 2.3% for first use, which rolls into your loan amount rather than coming out of pocket.
Credit standards flex lower than conventional—580 often works with strong income. VA appraisers flag property issues conventional lenders might ignore, which can kill deals on older coastal homes.
Down payment separates these most clearly. Conventional needs 3-20% cash; VA needs zero. But VA charges that funding fee upfront, while conventional spreads PMI across years.
Property approval differs significantly. VA appraisers require full pest inspections and flag peeling paint or roof wear. Conventional appraisers care less about deferred maintenance unless it affects value.
Use VA if you qualify and plan to live in the home. The zero-down advantage outweighs the funding fee on coastal properties where 20% down runs $80K-150K in Fort Bragg.
Choose conventional for investment properties, second homes, or competing offers where VA appraisal requirements might slow your close. Also pick conventional if the home needs work that would fail VA inspection standards.
Yes, but coastal erosion concerns can complicate VA appraisals. Properties near bluff edges sometimes fail VA requirements even when they'd pass conventional review.
Conventional typically closes 3-5 days faster. VA requires additional inspections and has stricter appraisal protocols that extend timelines slightly.
Not usually. The funding fee averages less than PMI would cost over 5-7 years, and you never pay PMI on VA loans regardless of down payment.
Absolutely. Many veterans choose conventional for investment properties, second homes, or when buying fixer properties that wouldn't pass VA inspection standards.
VA often approves 580-600 credit with strong income. Conventional wants 620 minimum, though 740+ gets significantly better rates on both programs.