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in Los Banos, CA
Both FHA and VA loans help Los Banos buyers get into homes with less cash upfront than conventional mortgages require. The right choice depends on your military status and how much you can put down.
FHA works for anyone who qualifies. VA is reserved for veterans and active military but offers better terms if you're eligible.
FHA loans require just 3.5% down if your credit score hits 580. You'll pay mortgage insurance for the life of the loan on most FHA mortgages.
Credit scores as low as 500 can work with 10% down. FHA accepts debt ratios up to 50% in some cases, making approval easier for buyers with existing car payments or student loans.
You pay an upfront mortgage insurance premium of 1.75% plus annual premiums between 0.45% and 1.05%. This insurance never drops off unless you refinance to conventional later.
VA loans require zero down payment for eligible veterans and active service members. You avoid monthly mortgage insurance completely, which saves $150-300 monthly on a typical Los Banos purchase.
You pay a one-time funding fee between 1.4% and 3.6% depending on your down payment and service history. First-time VA users with zero down pay 2.3%, which you can roll into the loan.
VA allows debt ratios over 50% with strong compensating factors. Credit requirements are flexible—most lenders approve 620 scores, though some go lower.
VA eliminates monthly mortgage insurance while FHA charges it forever. On a $400,000 Los Banos home, that's $200+ monthly you keep with VA.
FHA needs 3.5% down minimum. VA requires nothing down, saving you $14,000 on that same purchase. Both loans have similar interest rates since both carry government backing.
VA funding fees are lower than FHA upfront insurance for most borrowers. A disabled veteran pays no funding fee at all while every FHA borrower pays 1.75% upfront.
If you're military-eligible, VA wins on cost. You save on both the down payment and monthly payments. The only reason to choose FHA over VA is if you've already used your full VA entitlement.
Non-military buyers use FHA by default since VA isn't available. FHA works well in Los Banos for first-time buyers who can handle the 3.5% down but can't reach conventional's 5-20% requirement.
Run the numbers on monthly costs. That mortgage insurance on FHA adds up to $30,000+ over a typical loan term. VA's upfront fee costs less even when you finance it into the loan.
Yes, you can reuse VA benefits after paying off your previous VA loan. Some buyers have enough entitlement to use VA on multiple properties simultaneously.
No. FHA approves scores as low as 580 with 3.5% down. Some lenders go to 500 with 10% down, though those deals are harder to close.
Both take 30-40 days typically. VA appraisals can add a few days since VA requires specific property inspections that FHA doesn't mandate.
Only if you put down 10% or more at purchase. Then it drops after 11 years. Most FHA buyers put down 3.5% and pay MI forever.
VA appraisers are strict about property condition. You can negotiate repairs with the seller or walk away without penalty if fixes are too expensive.