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in Mammoth Lakes, CA
Mammoth Lakes buyers face a choice between conventional financing and VA loans if they qualify for military benefits. Both work for primary residences and vacation properties, but the down payment and approval requirements differ sharply.
VA loans eliminate the down payment entirely for eligible veterans. Conventional loans require at least 3% down but offer more flexibility for investment properties and second homes in this resort market.
Conventional loans require 3-5% down for primary homes and 10-20% for vacation properties. Credit scores start at 620, but rates improve significantly above 740.
You can use conventional financing for any property type in Mammoth Lakes. That includes condos near the village, single-family homes, and investment properties you plan to rent short-term.
Private mortgage insurance applies when you put down less than 20%. PMI drops off automatically once you reach 22% equity, unlike the VA funding fee which never disappears.
VA loans eliminate the down payment requirement completely. Eligible veterans can finance 100% of the purchase price on primary residences in Mammoth Lakes.
The VA doesn't set a minimum credit score, but most lenders want 580 or higher. You'll pay a one-time funding fee between 1.4% and 3.6% depending on down payment and prior VA loan use.
VA loans only work for primary residences. You can't use them for vacation homes or investment properties, which limits options in a resort town where many buyers want second homes.
The down payment gap is the biggest difference. VA borrowers can buy with nothing down while conventional requires 3-20% depending on property type and occupancy.
Property use restrictions matter in Mammoth Lakes. VA loans require you to occupy the home as your primary residence, which rules out vacation properties. Conventional loans work for any occupancy type.
Monthly costs differ even at the same rate. VA loans have no monthly mortgage insurance. Conventional loans under 80% LTV require PMI, typically adding $100-300 per month on a $600,000 purchase.
Choose VA if you're buying a primary residence and want to preserve cash. The zero down payment and no PMI save tens of thousands upfront and hundreds monthly.
Go conventional if you're buying a vacation home or investment property. VA eligibility doesn't help when the property type doesn't qualify under program rules.
Consider conventional even with VA eligibility if you're buying a condo. Some Mammoth Lakes condo complexes don't meet VA approval requirements, but they still qualify for conventional financing.
No. VA loans require primary residence occupancy. If you want a vacation property, you need conventional financing regardless of your military service.
VA loans cost less monthly when you factor in no mortgage insurance. On a $600,000 purchase with 5% down, you'd save $200-300 per month versus conventional.
Not materially. Both close in 30-45 days typically. VA appraisals can add 3-5 days, but that rarely affects the overall timeline.
Not usually. VA rates run 0.25-0.5% lower than conventional on average. The government guarantee reduces lender risk, which translates to lower rates.
VA allows rental after you've occupied the home as your primary residence for at least 12 months. Conventional has no occupancy requirement after closing.