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in Auburn, CA
Auburn's housing market serves everyone from tech commuters to retired veterans. If you're military-connected, you've got a choice most buyers don't: conventional or VA financing.
The difference between these two programs affects your down payment, monthly costs, and long-term equity. Both work well here, but your situation determines which saves you more money.
Conventional loans are the standard mortgage most Auburn buyers use. They require 3-20% down depending on your credit and loan amount.
You'll pay private mortgage insurance if you put down less than 20%. Rates vary by borrower profile and market conditions, but credit scores above 740 get the best pricing.
These loans work for any property type in Auburn — single-family homes, condos, investment properties, second homes. Lenders expect steady income and a debt-to-income ratio below 50%.
VA loans are government-backed mortgages for military members, veterans, and eligible surviving spouses. Zero down payment is the headline feature, but the funding fee structure matters too.
You'll pay a VA funding fee unless you're exempt due to disability. First-time use runs 2.15% of the loan amount for zero down purchases. No monthly mortgage insurance, which cuts your payment significantly.
The property must be your primary residence and meet VA minimum property requirements. Auburn has plenty of VA-approved properties, but some older homes in historic areas need repairs before they qualify.
The down payment gap is obvious: VA requires nothing, conventional starts at 3%. But monthly costs tell a different story since VA loans skip mortgage insurance entirely.
VA loans cap certain closing costs and limit what sellers can charge you. Conventional loans have no such protection — you pay whatever's negotiated. VA appraisals also include property condition requirements that conventional appraisals don't.
Credit flexibility favors VA programs. We regularly close VA loans with 580 credit scores. Conventional loans below 620 don't exist, and you'll pay steep rate penalties until you hit 740.
If you're VA-eligible and buying a primary residence, start there. The zero-down structure preserves your cash for repairs, furniture, or emergency reserves. Monthly savings from no PMI typically beat conventional financing even after the funding fee.
Choose conventional if you're buying investment property, a second home, or a fixer-upper that won't pass VA inspection. Also go conventional if you've used your VA entitlement and don't want to restore it, or if you're putting 20%+ down anyway.
Auburn's veteran community is significant, and local sellers understand VA financing. Don't let outdated fears about VA appraisals scare you — most homes here meet standards without drama.
Yes, but older homes must meet VA property standards. Wood-destroying pest inspections and certain repairs may be required before closing.
Typically 0.3-1.5% of your loan amount annually, paid monthly. A $500K loan at 0.5% PMI costs about $208 per month.
Most sellers here accept both equally. VA appraisals take slightly longer, but the difference rarely affects competitive offers.
Subsequent use with zero down is 3.3% of the loan amount. First-time use is 2.15%, and disabled veterans are exempt.
Yes. A 5% down payment drops the fee to 1.5%, and 10%+ drops it to 1.25% of the loan amount.
Conventional loans typically close 2-3 days faster due to simpler appraisal requirements. Both usually close within 30 days.