Loading
in Ukiah, CA
Both loan types work well in Ukiah, but they serve different borrowers. Conventional loans require down payments and stronger credit, while VA loans eliminate the down payment for eligible veterans.
The choice often comes down to your military service history and available cash. Veterans with VA eligibility almost always benefit from using it, even with money saved for a conventional down payment.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You'll need a 620 credit score minimum, though 740+ gets the best rates.
Down payments start at 3% for first-time buyers and 5% for repeat buyers. Put down less than 20%, and you'll pay private mortgage insurance until you hit 20% equity.
These loans handle most Ukiah properties without issue. Loan limits reach $806,500 in Mendocino County for 2025, covering nearly all local inventory.
VA loans let eligible veterans and active-duty service members buy with zero down. You pay a funding fee instead of PMI, which ranges from 1.25% to 3.3% depending on down payment and whether it's your first VA loan use.
Credit requirements run more lenient than conventional. Most lenders approve at 580-620, and the VA itself sets no minimum score.
The same $806,500 limit applies in Mendocino County. Sellers pay all your closing costs in competitive situations, though that's harder to negotiate in tight inventory markets.
The down payment gap is massive. VA borrowers keep their cash while conventional buyers need $12,000-$80,000+ saved depending on purchase price and down payment percentage.
Monthly costs differ too. VA funding fees can be financed into the loan, while conventional PMI adds $100-300 monthly until you reach 20% equity through payments or appreciation.
Property inspections tell another story. VA requires pest inspections and stricter appraisal standards, which occasionally kill deals on older Ukiah properties needing repairs.
Use your VA eligibility if you have it. The zero-down structure and lack of monthly mortgage insurance outweigh nearly every conventional benefit, even if you have 10-20% saved.
Conventional makes sense for non-veterans, properties that won't pass VA appraisal standards, or when you're buying investment property. It's also faster in multiple-offer situations since sellers perceive less inspection risk.
Some veterans still choose conventional when buying fixer-uppers in Ukiah's older neighborhoods. VA appraisers flag peeling paint, roof issues, and safety concerns that conventional appraisers note but don't require fixing before closing.
Yes, if it's on a permanent foundation and you own the land. The home must meet HUD code and VA's minimum property requirements for safety and livability.
No. VA rates typically match or beat conventional rates because of the government guarantee. Veterans with lower credit scores especially benefit from VA rate advantages.
Only through lender-paid mortgage insurance, where you accept a higher rate instead of monthly PMI. The rate increase usually costs more long-term than paying PMI.
First-time use with zero down is 2.15%. It drops to 1.25% with 5%+ down, or 1.25% on subsequent use. Disabled veterans and surviving spouses pay nothing.
Conventional typically closes 2-5 days faster. VA appraisals require more documentation and have stricter standards, occasionally causing delays if repairs are needed.
Conventional allows investment properties. VA requires you to occupy the home as your primary residence, though you can rent extra units in multi-family properties.