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in Loomis, CA
Loomis buyers often weigh conventional mortgages against VA loans when they qualify for both. The right choice depends on your down payment savings, credit profile, and how long you plan to own the home.
VA loans eliminate the down payment and monthly mortgage insurance that conventional loans require. But conventional loans offer faster closings and work better when you're competing against cash offers in Placer County's tight inventory.
Conventional loans are backed by private lenders and follow Fannie Mae or Freddie Mac guidelines. You typically need 3% to 20% down, with PMI required below 20% equity until you hit that threshold.
Credit requirements start around 620, but expect better rates at 740 or higher. Most Loomis buyers use conventional financing because it's familiar to sellers and doesn't trigger VA appraisal requirements that can slow deals.
Loan limits in Placer County let you borrow up to conforming amounts without jumping into jumbo territory. Conventional works well for buyers with stable W-2 income and decent savings who want flexibility on property type.
VA loans are guaranteed by the Department of Veterans Affairs for eligible service members and veterans. Zero down payment is the standout feature, plus no monthly mortgage insurance regardless of your equity position.
The VA funding fee runs 2.15% to 3.3% for first-time use, but you can roll it into the loan amount. Placer County appraisals follow stricter property standards than conventional, which occasionally kills deals on fixer properties.
Credit requirements are flexible, with many lenders approving 580 scores. Sellers sometimes worry VA appraisals will come in low or require repairs, but in Loomis's stable market that's rarely an issue on well-maintained homes.
Down payment separates these loans most dramatically. Conventional requires at least 3% down plus closing costs, while VA needs zero down but charges a funding fee that adds 2-3% to your loan balance.
Monthly costs differ too. Conventional loans under 20% down carry PMI that runs 0.3% to 1.5% annually until you hit 20% equity. VA loans never charge mortgage insurance, which saves $150 to $300 monthly on typical Loomis purchase prices.
Property standards matter when you're competing for homes. VA appraisers flag peeling paint, roof issues, and safety concerns that conventional appraisers note but don't require fixing before closing. In multiple offer situations, that appraisal difference makes sellers prefer conventional buyers.
Choose VA if you're eligible and want to preserve cash or can't save 3-5% down payment. The monthly savings from no mortgage insurance offset the funding fee within 2-3 years on most scenarios we run for Loomis buyers.
Go conventional when you're competing against multiple offers or buying a property that needs cosmetic work. Sellers and listing agents recognize conventional financing closes more predictably, which wins deals even when your offer price matches a VA buyer.
Some buyers use VA for their first purchase to minimize cash outlay, then refinance to conventional later if rates drop. Others stick with VA for life because the mortgage insurance savings compound over 30 years of ownership.
VA loans work on single-family homes, condos, and multi-family up to four units. The property must meet VA minimum property requirements, which flag safety and livability issues.
PMI costs 0.3% to 1.5% annually based on credit score and down payment. On a typical Loomis purchase, expect $150 to $300 monthly until you reach 20% equity.
Not often, but in multiple offer scenarios they sometimes prefer conventional financing. VA appraisal requirements can delay closing or require repairs that conventional loans don't trigger.
Veterans with service-connected disabilities are exempt. Everyone else pays 2.15% to 3.3% depending on down payment and whether it's your first VA loan use.
Conventional loans typically close 3-5 days faster because VA appraisals take longer and sometimes require repair negotiations. Both usually close within 30 days.