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in Grass Valley, CA
Grass Valley buyers face a clear choice: put money down with conventional financing or use VA benefits to avoid it entirely. Both loans work well in Nevada County's market, but they serve different borrowers.
Conventional loans require stronger credit and down payments but offer flexibility any buyer can access. VA loans remove the down payment barrier for veterans and active military, though not everyone qualifies for the program.
Conventional loans are the standard mortgage most buyers use in Nevada County. You need 620+ credit and at least 3% down, though 20% avoids mortgage insurance. Lenders price these based on credit score, down payment, and debt ratios.
These loans hit conforming limits at $806,500 in 2025 for single-family homes. Grass Valley properties under that cap get the best rates. Above it, you're into jumbo territory with stricter requirements and higher costs.
VA loans let eligible military borrowers buy Grass Valley homes with zero down and no monthly mortgage insurance. The VA guarantee allows lenders to offer better terms than conventional financing. You pay a one-time funding fee unless you're disabled.
Credit requirements are more forgiving than conventional. Most lenders approve VA loans at 580-600 credit. The loan limit in Nevada County matches conforming limits, but qualified veterans can exceed it with a down payment.
The down payment gap is massive. Conventional demands 3-20% upfront while VA requires nothing from qualified borrowers. On a $500,000 Grass Valley home, that's $15,000-$100,000 you either need or don't.
Mortgage insurance works differently. Conventional charges monthly PMI until you hit 20% equity. VA has no monthly insurance but collects a funding fee at closing—typically 2.3% for first-time zero-down buyers, 3.6% for subsequent use. Disabled veterans pay neither.
Use your VA benefit if you're eligible and buying a primary residence in Grass Valley. Zero down and no PMI beats conventional financing on monthly cost and upfront cash. The funding fee gets rolled into the loan, so you're not paying it out of pocket at closing.
Choose conventional if you're not military-eligible, buying a second home, or want to avoid the VA appraisal process. Conventional also makes sense if you have 20%+ down and stellar credit—you'll match or beat VA rates without the funding fee.
No. VA loans require you to occupy the home as your primary residence. Investment properties and second homes need conventional financing.
Conventional lenders require 620 minimum. VA loans typically approve at 580-600 credit, though individual lenders set their own overlays.
Not significantly. Both close in 25-35 days typically. VA appraisals can add a few days but rarely delay closings in Nevada County.
Yes if you receive VA disability compensation. Otherwise, the fee applies but gets financed into your loan amount at closing.
VA loans typically price 0.25-0.5% lower than conventional due to the government guarantee. Rates vary by borrower profile and market conditions.