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in Fullerton, CA
Two of the strongest loan programs available — but they serve very different buyers. FHA is open to almost anyone. VA is reserved for those who served.
Fullerton buyers need to know which program actually fits before they start shopping. Picking the wrong one costs time and money.
FHA loans require just 3.5% down with a 580 credit score. Drop to 500 and you still qualify — but lenders will want 10% down.
The catch is mortgage insurance. FHA charges an upfront premium plus a monthly fee. It stays on your loan for life if you put less than 10% down.
VA loans require zero down payment and no monthly mortgage insurance. For eligible borrowers, that combination is hard to beat in a high-cost market like Orange County.
You pay a one-time funding fee instead. It varies based on down payment and service history. Most borrowers roll it into the loan balance.
The biggest gap is cost. VA has no monthly mortgage insurance. FHA borrowers pay it every month — sometimes for the life of the loan.
Eligibility is the other dividing line. FHA is open to anyone who meets the credit and income thresholds. VA requires a Certificate of Eligibility tied to military service.
If you served and have your VA entitlement, use it. The monthly savings on mortgage insurance alone make VA the better deal in most Fullerton scenarios.
If you did not serve, FHA is likely your path to a low down payment purchase. It is also worth a second look if your credit is below 640 and conventional loans are out of reach.
No. You pick one per purchase. Most eligible veterans choose VA because the cost structure is more favorable.
VA rates typically run lower than FHA rates for qualified borrowers. Rates vary by borrower profile and market conditions.
Veterans with full entitlement have no VA loan limits. Borrowers with partial entitlement may face limits tied to county conforming limits.
If you put less than 10% down, FHA mortgage insurance stays for the life of the loan. Putting 10% or more down lets it cancel after 11 years.
The VA sets no official minimum, but most lenders require at least 620. Some lenders we work with go lower depending on the full file.
Both close on similar timelines. VA appraisals can take longer due to strict property condition requirements, so plan for that upfront.