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in Monterey, CA
Monterey sits near several military installations. That makes VA loans a real option for a large share of local buyers.
Conventional loans cover everyone else. Knowing which fits your situation saves time and money.
Conventional loans are not government-backed. Lenders set their own standards, but most require at least a 620 credit score.
You can put as little as 3% down. But below 20%, you pay private mortgage insurance — PMI — until you reach that equity threshold.
VA loans are guaranteed by the Department of Veterans Affairs. Eligible borrowers include veterans, active-duty service members, and surviving spouses.
There is no down payment requirement and no PMI. You pay a funding fee instead — a one-time cost that can be rolled into the loan.
HousingWire flagged the 30-year fixed rate hitting 6.57% with applications dropping sharply. That rate pressure hits conventional borrowers harder — VA rates typically run lower. Rates vary by borrower profile and market conditions.
VA loans also skip PMI entirely. On a Monterey-priced home, that difference in monthly cost is meaningful. Conventional borrowers paying PMI can remove it once they hit 20% equity.
If you have VA eligibility, use it. Zero down plus no PMI is a hard combination to beat — especially in a high-cost market like Monterey.
Conventional makes more sense if you lack eligibility, have strong credit and a large down payment, or are buying an investment property. VA loans are for primary residences only.
Yes. VA loans have no down payment requirement for eligible borrowers. There is no loan limit cap if you have full VA entitlement.
No PMI ever on a VA loan. You pay a one-time funding fee instead, which can be financed into the loan balance.
Most lenders require a 620 minimum. Better scores get better rates — 740+ puts you in the top pricing tier.
No. VA loans require the property to be your primary residence. Rentals and investment properties need conventional or other financing.
Conventional loans often close faster. VA loans require a VA appraisal, which adds time but protects the buyer.
It is a one-time fee paid to the VA. The amount varies by down payment and whether it is your first VA loan use.