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Two government-backed loans dominate Merced's entry-level market. FHA and VA each solve a different problem for buyers.
FHA is open to almost anyone. VA is reserved for veterans and service members — but when you qualify, it's hard to beat.
FHA loans require just 3.5% down with a 580 credit score. Drop to 500 and you'll need 10% down.
Every FHA loan carries mortgage insurance. You pay an upfront fee plus a monthly premium for the life of the loan.
VA loans require zero down payment and no monthly mortgage insurance. Eligible borrowers keep more cash at closing.
You'll pay a one-time funding fee instead. That fee can be rolled into the loan balance.
Local decision guide
Use this comparison to weigh FHA Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Merced.
Two government-backed loans dominate Merced's entry-level market. FHA and VA each solve a different problem for buyers.
FHA is open to almost anyone. VA is reserved for veterans and service members — but when you qualify, it's hard to beat.
FHA loans require just 3.5% down with a 580 credit score. Drop to 500 and you'll need 10% down.
The biggest split is mortgage insurance. VA borrowers skip the monthly premium entirely. FHA borrowers pay it every month.
VA rates typically run lower than FHA rates. Rates vary by borrower profile and market conditions.
FHA has loan limits set by county. VA has no loan limit for borrowers with full entitlement.
If you served, use your VA benefit. The savings on mortgage insurance alone add up fast over a 30-year loan.
If you're a civilian buyer with limited savings, FHA gets you into a home with 3.5% down and a credit score as low as 580.
Yes, if you're an eligible veteran, active-duty member, or surviving spouse. Your Certificate of Eligibility confirms your benefit.
VA rates typically come in lower. Rates vary by borrower profile and market conditions.
Not if you have full VA entitlement. Borrowers with reduced entitlement may face limits tied to county conforming limits.
VA usually wins. No monthly mortgage insurance means a lower payment even if the rate is similar.
Not on the same property. You pick one loan per purchase. Your eligibility and situation determine which fits.
FHA allows 580 for 3.5% down. Most VA lenders want 620, though some go lower depending on the full file.
in Merced, CA