Question 1

Can I use a VA loan in Merced with bad credit?

Accepted Answer

VA has no official minimum credit score, but most lenders require 580-620. Conventional requires at least 620.

Question 2

Does VA work for condos in Merced?

Accepted Answer

Yes, but the condo complex must be VA-approved. Conventional condo rules are more flexible.

Question 3

What is the VA funding fee?

Accepted Answer

It's a one-time fee rolled into the loan. It ranges from 1.25% to 3.3% depending on your down payment and prior VA use.

Question 4

Can I use conventional if I already have a VA loan?

Accepted Answer

Yes. Conventional has no restrictions on prior government loan use. You can carry both loans at once.

Question 5

Which loan closes faster in Merced?

Accepted Answer

Both close in similar timeframes. VA requires a VA appraisal, which can add a few days versus a standard appraisal.

Question 6

Do both loans have mortgage insurance?

Accepted Answer

VA has no monthly mortgage insurance. Conventional requires PMI if your down payment is under 20%.

Conventional vs VA Loans in Merced, CA