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in Nevada City, CA
Nevada City's historic charm and foothill location draw both civilian buyers and military families relocating to Northern California. Choosing between conventional and VA financing depends on your service status and how much cash you can put down.
Both loans work well for Nevada City's mix of Victorian homes and newer construction. Your eligibility determines which path makes sense.
Conventional loans are the standard mortgage for borrowers without VA eligibility. You need 3% down minimum, though 20% avoids private mortgage insurance.
Credit requirements start at 620, but Nevada City's competitive market favors 680+ scores. These loans work for primary homes, second homes, and investment properties across Nevada County.
VA loans offer zero down payment for eligible veterans and active-duty service members. No monthly mortgage insurance ever, regardless of down payment amount.
The VA funding fee ranges from 1.4% to 3.6% of the loan amount but can be rolled into your mortgage. Disabled veterans and some surviving spouses pay no funding fee at all.
The down payment gap is huge. Conventional needs at least 3% cash, while VA requires nothing upfront if you qualify. On a Nevada City home, that's real money staying in your account.
Monthly costs differ too. Conventional loans under 20% down carry PMI that can add $150-300 monthly. VA loans skip that entirely, lowering your payment even with the one-time funding fee.
If you qualify for VA benefits, use them. Zero down and no PMI beat conventional financing in almost every scenario, especially in Nevada City where saving cash helps with historic home repairs.
Conventional makes sense when you're not VA-eligible or buying investment property. It's also better for second homes in the area, since VA loans require owner occupancy.
Yes, as long as the home meets VA appraisal standards. Historic homes sometimes need repairs to pass, but the loan itself works fine.
No. VA rates typically match or beat conventional rates because the government guarantee reduces lender risk.
Not on standard conventional loans. You pay PMI until you reach 20% equity through payments or appreciation.
Not usually. The one-time fee of 1.4-3.6% costs less over time than years of monthly PMI payments on conventional loans.
Both take similar timeframes. VA appraisals can add a few days, but processing speed depends more on your lender than loan type.