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in Truckee, CA
Truckee's median home prices run higher than most California towns, so choosing the right loan matters. Veterans have a huge edge here with VA financing that skips down payments entirely.
Conventional loans still dominate the market because most buyers aren't eligible for VA benefits. Each loan type handles Truckee's resort-area pricing differently.
Conventional loans aren't backed by any government agency, which means lenders set stricter credit and income standards. You'll need at least 620 credit for most programs, though 680+ gets better pricing.
Down payments start at 3% for first-time buyers but you'll pay PMI until you hit 20% equity. On a $700K Truckee home, that's $21K minimum down for conventional financing.
These loans handle second homes and investment properties well, which matters in a resort town like Truckee. Rates stay competitive if your credit profile is strong.
VA loans let eligible veterans and active military buy with zero down payment and no monthly mortgage insurance. On that same $700K Truckee property, you'd save $21K upfront and $200-300 monthly versus conventional.
Credit requirements run more flexible than conventional loans, though most lenders still want 580-620 minimum. You'll pay a one-time funding fee instead of ongoing PMI.
The catch is simple: you must qualify through military service. VA loans work for primary residences only, so your second home in Tahoe won't qualify.
Down payment creates the biggest split. Conventional needs 3-20% cash while VA requires nothing. That's $21K-140K saved upfront on a typical Truckee home.
Monthly costs differ too. Conventional loans under 20% down carry PMI at $200-300 monthly. VA loans skip this entirely, though you'll pay a 2.3% funding fee rolled into the loan.
Property type matters more than buyers expect. VA only covers your primary home. Conventional works for the vacation cabin or rental property many Truckee buyers want.
If you qualify for VA benefits and plan to live in Truckee full-time, VA financing wins by a mile. You'll save tens of thousands upfront and hundreds monthly versus conventional with low down payment.
Conventional makes sense for buyers without military service, anyone purchasing a second home or investment property, or borrowers with 20%+ down who want to avoid the VA funding fee. Your occupancy plans and savings determine which path works.
Most Truckee buyers I work with use conventional simply because they're not VA-eligible. But veterans shopping here should absolutely explore VA first before considering conventional options.
No, VA loans only cover primary residences where you'll live full-time. You'd need conventional financing for a second home or vacation property.
Conventional loans typically require 620 minimum, ideally 680+. VA loans accept 580-620 with most lenders, offering more flexibility for veterans.
Conventional requires 3-20% down depending on the program. VA loans require zero down payment for eligible veterans and service members.
VA costs less monthly by eliminating mortgage insurance. Conventional loans under 20% down add $200-300 monthly PMI on typical Truckee home prices.
Veterans with service-connected disabilities are exempt from the funding fee. Otherwise, the 2.3% fee applies but gets rolled into your loan amount.
Both close in similar timeframes, typically 30-45 days. VA loans sometimes face appraisal delays in resort areas, but the difference is minimal.