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in San Juan Capistrano, CA
San Juan Capistrano attracts a strong veteran community. Choosing between conventional and VA financing is one of the most consequential decisions eligible buyers face.
These two loans serve different borrowers. Knowing which fits your profile saves money and avoids wasted time in underwriting.
Conventional loans aren't backed by the government. Lenders take on the risk, so they set stricter requirements — typically a 620+ credit score and 3–20% down.
Put down less than 20% and you'll pay private mortgage insurance (PMI). PMI adds to your monthly cost until you hit 20% equity.
The upside is flexibility. Conventional loans work on primary homes, second homes, and investment properties.
VA loans are for veterans, active-duty service members, and eligible surviving spouses. Zero down payment. No PMI. That's a real structural advantage.
There's a funding fee — a one-time cost rolled into the loan. First-time VA users with zero down pay 2.15% of the loan amount. Disabled veterans are exempt.
VA loans also cap what lenders can charge in closing costs. That matters on Orange County purchase prices.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping over 10%. For VA borrowers, rates typically run lower than conventional — that gap matters more when rates are elevated.
Conventional loans require PMI below 20% down. VA loans never require it. On a $900K Orange County purchase, that difference can be $500+ per month.
Conventional loans have no eligibility gate. VA loans require a Certificate of Eligibility (COE) — you must qualify through military service first.
If you have VA eligibility, use it. Zero down and no PMI almost always wins against conventional financing — especially at current rate levels.
Conventional makes sense if you're buying a non-primary property, have strong equity, or have exceeded your VA entitlement on a prior loan.
We run both scenarios side-by-side for eligible buyers. Sometimes conventional with 20% down beats a VA loan on total cost. We'll show you the math.
Yes, if you have full VA entitlement. There's no loan limit for eligible borrowers with full entitlement — zero down applies regardless of purchase price.
Typically no. VA loans usually carry lower rates than conventional. Rates vary by borrower profile and market conditions.
Most conventional lenders require 620 minimum. Better scores above 740 get the most competitive rates.
Yes, through lender-paid PMI or a piggyback loan structure. Both have trade-offs — we can walk you through which makes sense.
It's a one-time fee charged on VA loans — typically 2.15% for first use with zero down. Disabled veterans are exempt from paying it.
Conventional can close slightly faster. VA loans require a VA appraisal, which adds a step — though strong lenders manage the timeline well.