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in Dos Palos, CA
Most Dos Palos buyers face a choice between conventional financing and VA loans if they served. The right pick depends on your down payment, credit profile, and how long you plan to stay.
Both loan types work well in Merced County's rural housing market. VA loans let veterans skip the down payment entirely. Conventional loans offer more property flexibility and no funding fees.
Conventional loans are standard mortgages backed by Fannie Mae or Freddie Mac, not the government. You'll typically need 3-5% down and a 620+ credit score, though better terms come with higher scores.
These loans work for any property type in Dos Palos—single-family homes, condos, investment properties, or second homes. You can drop private mortgage insurance once you hit 20% equity. Rates vary by borrower profile and market conditions.
VA loans are guaranteed by the Department of Veterans Affairs for eligible veterans and active-duty service members. You pay nothing down and face no ongoing mortgage insurance, though a one-time funding fee applies.
Credit requirements are more flexible than conventional, often accepting scores in the 580-600 range. The funding fee runs 2.15-3.3% depending on service type and whether it's your first VA loan. That fee can be rolled into the loan amount.
The biggest split is down payment. VA loans require zero. Conventional loans need at least 3%, which on a $350,000 Dos Palos home means $10,500 upfront.
Monthly costs differ too. Conventional loans under 20% down carry PMI at roughly 0.5-1% annually. VA loans skip that but charge a funding fee upfront. For most borrowers, VA's structure saves money over the first 5-10 years.
If you qualify for VA benefits, that loan wins in most Dos Palos scenarios. Zero down plus no PMI beats conventional's costs unless you're putting 20%+ down anyway.
Choose conventional if you're buying investment property, a second home, or don't meet VA eligibility. It's also the better pick if you need a jumbo loan above VA's county limits or want to avoid the funding fee on repeat use.
VA loans require the property to meet minimum safety standards at closing. For major repairs, look at the VA renovation loan instead.
VA lenders often approve 580-600 scores. Conventional typically needs 620 minimum, with better rates starting at 680+.
PMI costs 0.5-1% annually until you hit 20% equity. The VA funding fee is 2.15-3.3% one-time, typically cheaper over 5+ years.
Veterans with service-connected disabilities are exempt. Otherwise, you can pay it upfront instead of financing it.
Both take 30-45 days typically. VA appraisals can add a week in rural areas like Dos Palos due to appraiser availability.