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in Dos Palos, CA
Both FHA and VA loans help Dos Palos buyers get into homes with less cash upfront than conventional mortgages require. The right choice depends entirely on your military service history and down payment capacity.
FHA loans work for any qualified buyer meeting credit and income standards. VA loans are reserved for veterans, active-duty service members, and eligible surviving spouses who meet service requirements.
FHA loans accept credit scores as low as 580 with 3.5% down, making them accessible to first-time buyers in Dos Palos. You'll pay an upfront mortgage insurance premium plus annual MIP for the loan's life if you put down less than 10%.
These loans cap your debt-to-income ratio at 43-50% depending on compensating factors. Lenders allow gift funds for the entire down payment, which helps buyers with limited savings but family support.
VA loans eliminate down payments entirely and don't require monthly mortgage insurance. You'll pay a one-time funding fee that ranges from 1.4% to 3.6% of the loan amount, which can be rolled into your mortgage.
Credit requirements are more forgiving than conventional loans, though most lenders want 620 minimum. VA loans also skip the DTI caps you see with FHA, instead using a residual income calculation that considers family size and regional living costs.
The down payment gap is the most obvious split. FHA requires 3.5% minimum while VA requires nothing if you have full entitlement, which matters significantly on Dos Palos properties.
Monthly costs diverge sharply too. FHA's mortgage insurance adds 0.55-0.85% annually and never drops off. VA has no monthly insurance but charges that upfront funding fee, which disabled veterans get waived entirely.
Eligibility separates these programs completely. Anyone with qualifying income and credit can use FHA, while VA demands military service documentation through a Certificate of Eligibility.
If you're a veteran or active-duty service member, VA wins nearly every time. Zero down, no mortgage insurance, and lower rates make it the strongest residential loan program available in Dos Palos.
FHA makes sense when you don't qualify for VA benefits but need a low down payment loan. You'll pay more monthly due to mortgage insurance, but it's still more accessible than conventional financing for buyers with limited savings or credit challenges.
Some veterans still choose FHA when they've already used their VA entitlement on another property they still own. But if you have full VA eligibility available, using it saves thousands annually compared to FHA.
No, you choose one loan type per property. Veterans can use VA for one home and FHA for another investment property, but not simultaneously on the same purchase.
Both take 30-45 days typically. VA appraisals can add 3-7 days since VA requires specific property condition standards that FHA doesn't enforce as strictly.
Sellers sometimes hesitate on VA due to appraisal requirements and inspection concerns. Strong offers with quick closes overcome this bias quickly.
Yes, though you'll restart underwriting and pay new appraisal fees. Switch early if you discover VA eligibility, since the savings justify the delay.
VA rates run 0.25-0.50% lower than FHA on average. Rates vary by borrower profile and market conditions, but VA consistently beats FHA pricing.