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in Atwater, CA
Atwater buyers face a clear choice between conventional loans and VA loans if you've served. Conventional requires down payment but offers flexibility. VA costs nothing down but only works for veterans.
Most Merced County buyers default to conventional without checking VA eligibility. That's leaving money on the table if you qualify. We've seen Atwater veterans save $15,000+ upfront by using their VA benefit instead of putting down 5% conventional.
Conventional loans are backed by your credit and income, not the government. You need 620+ credit score and usually 3% down minimum. The more you put down, the better your rate and the faster PMI drops off.
These loans work for any property type in Atwater—single family, condo, investment property. Rates vary by borrower profile and market conditions. We see most Merced County buyers choose conventional when they don't qualify for VA or want to buy a second home.
VA loans are guaranteed by the Department of Veterans Affairs. Zero down payment. No monthly mortgage insurance. Lower rates than conventional in most cases. You need a Certificate of Eligibility proving military service.
We close VA loans at Castle Air Force Base addresses and throughout Atwater regularly. The VA funding fee is 2.3% for first-time users with zero down, but it's financed into the loan. Disabled veterans pay no funding fee at all.
Down payment is the biggest gap. Conventional needs 3-20% cash. VA needs zero. On a $400,000 Atwater home, that's $12,000 minimum vs nothing. VA also skips monthly PMI, saving $150-300 per month that conventional borrowers pay until they hit 20% equity.
Credit requirements differ slightly. Conventional typically needs 620 minimum. VA lenders often approve at 580-600 credit. Appraisals are stricter on VA—the property must meet VA minimum standards, which can kill deals on fixer-uppers.
Use VA if you're eligible, period. The zero down and no PMI beat conventional math on almost every deal we run. Only exception: you're buying a fixer that won't pass VA appraisal, or you want an investment property VA won't cover.
Choose conventional if you're not a veteran or you've already used VA entitlement on another property. Also go conventional for second homes, investment properties, or properties needing major repairs. If you can put 20% down on conventional, you skip PMI and often match VA's effective cost.
Only primary residences that meet VA minimum property requirements. Investment properties and most fixer-uppers won't qualify for VA financing.
Nearly always for eligible buyers. Zero down and no PMI offset the VA funding fee on most purchases, especially if you're putting less than 20% down on conventional.
Conventional typically requires 620 minimum. VA lenders often approve 580-600 credit, though rates improve significantly above 640.
Yes, put down 20% or more upfront. Some lenders offer lender-paid PMI with a higher rate, but VA still wins that math for eligible buyers.
Both typically close in 25-35 days. VA can run slightly longer if the appraisal requires repairs before closing.