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in Colfax, CA
Colfax sits in the Sierra Nevada foothills where buyers face a mix of historic homes and newer builds. Conventional and VA loans both work here, but they serve different borrowers with different requirements.
Your military service status determines eligibility for VA loans. Conventional loans open to everyone but demand stronger financials upfront.
Conventional loans require at least 620 credit and 3% down for most buyers. You'll pay mortgage insurance if you put down less than 20%, but you can drop it once you hit that equity threshold.
These loans work for primary homes, second homes, and investment properties. Rates vary by borrower profile and market conditions, but typically reward strong credit with lower pricing.
VA loans let eligible veterans and active military buy with zero down. No mortgage insurance ever, regardless of down payment size. You pay a one-time funding fee instead.
Credit requirements run more flexible than conventional, often accepting 580 scores. The property must be your primary residence and meet VA appraisal standards.
VA loans win on upfront cash and monthly cost for eligible borrowers. You save the down payment and skip PMI entirely. Conventional loans offer more property flexibility and work when VA entitlement is tied up.
Conventional financing moves faster in competitive markets since sellers see no appraisal complications. VA appraisals include property condition requirements that can delay or kill deals on fixer properties common in Colfax's historic areas.
Use your VA benefit if you have it and you're buying a primary residence. The savings on down payment and mortgage insurance typically beat conventional financing by thousands annually.
Go conventional if you're buying a second home, investment property, or a fixer that won't pass VA appraisal. Also consider it if you've used your VA entitlement and haven't sold that property yet.
VA appraisers flag safety issues like roof damage or non-working systems. Many historic Colfax properties need repairs that must be completed before closing.
VA loans typically offer slightly lower rates than conventional. Your specific rate depends on credit score, down payment, and current market conditions.
Some sellers worry about VA appraisal requirements delaying deals. A strong conventional offer with 20% down often looks cleaner in multiple-bid situations.
No. You'll pay PMI on any conventional loan with less than 20% down. It drops automatically once you reach 22% equity through payments or appreciation.
First-time VA buyers pay 2.15% with zero down, 1.5% with 5-9% down. You can roll this into your loan amount instead of paying upfront.