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in Mammoth Lakes, CA
Both FHA and VA loans offer low-barrier entry to homeownership, but they serve different borrowers. If you're military-affiliated, VA loans beat FHA on almost every metric.
Mammoth Lakes' resort-driven market means understanding property eligibility matters. Both programs have occupancy rules that affect vacation rentals and second homes.
Rates vary by borrower profile and market conditions. Your service status determines which program you can access—eligibility isn't a choice, it's based on military history.
FHA loans let you buy with just 3.5% down if your credit score hits 580. Below that, you need 10% down—something few lenders advertise upfront.
You'll pay two mortgage insurance premiums: 1.75% upfront and 0.55%-1.05% annually. Most borrowers carry that monthly premium for the loan's entire life.
FHA works for all qualified buyers regardless of military service. Credit standards are lenient—you can get approved with collections and recent credit events conventional lenders reject.
VA loans require zero down payment and charge no monthly mortgage insurance. That combination creates the lowest monthly payment of any major loan program.
You'll pay a funding fee—typically 2.3% for first-time use with zero down. Veterans with service-connected disabilities get that waived entirely.
Eligibility requires military service: 90+ days active duty during wartime or 181+ days during peacetime. National Guard and Reserve members need six years of service.
VA appraisers are strict about property condition. Peeling paint, missing handrails, and deferred maintenance kill deals—a bigger issue in older Mammoth properties.
Down payment separates these programs first. VA requires nothing while FHA needs 3.5%—that's $17,500 on a $500,000 Mammoth Lakes condo.
Mortgage insurance costs diverge sharply. FHA charges monthly premiums that add $200-$400 to your payment. VA charges nothing monthly, just an upfront funding fee.
Credit flexibility favors FHA slightly. VA lenders want 620+ scores while FHA officially goes to 580. We close VA loans at 600+ with strong compensating factors.
Property standards are tougher with VA. Their appraisers flag cosmetic issues that FHA would pass. If you're buying a fixer in town, FHA may be your only path.
If you qualify for VA, use it. The zero down payment and no monthly insurance beat FHA every time on both upfront cash and monthly cost.
Choose FHA when you're not military-affiliated or when the property won't pass VA's condition standards. We see this with older condos needing deferred maintenance.
Both programs require owner occupancy. Don't plan to use either for a Mammoth vacation rental or investment property—you must live there as your primary residence.
VA reuse is unlimited after you sell or refinance. FHA requires three years between transactions if you already have an FHA loan active.
No. Both programs require primary residence occupancy—you must live there year-round. Vacation homes and short-term rentals violate program rules.
VA loans create lower payments due to zero down payment and no monthly mortgage insurance. FHA's lifetime MI premium adds $200-$400 monthly.
Switch to FHA if the seller won't make repairs. FHA appraisers are less strict about cosmetic issues and deferred maintenance.
No. VA benefits restore after you sell or pay off your loan. You can reuse VA financing unlimited times throughout your life.
FHA officially accepts 580 credit scores while VA lenders typically want 620+. In practice, we close both programs around 600 with strong files.
VA waives the funding fee for disability ratings. FHA's upfront and monthly premiums are mandatory—only refinancing out eliminates them.