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in Loomis, CA
Both FHA and VA loans offer paths to homeownership in Loomis with less money down than conventional mortgages. The right choice depends entirely on your military service history and how much you want to pay upfront.
FHA loans work for any qualified buyer willing to put 3.5% down. VA loans require zero down but you must meet military service requirements to qualify.
FHA loans let you buy a Loomis home with just 3.5% down if your credit score hits 580. Scores between 500-579 require 10% down, though most lenders set higher minimums.
You'll pay two types of mortgage insurance: an upfront premium of 1.75% rolled into your loan, plus annual premiums between 0.55%-1.05% for the life of the loan. Debt-to-income ratios can stretch to 50% with strong compensating factors.
VA loans require zero down payment for eligible veterans, active-duty members, and qualifying spouses. Most lenders want 620+ credit, though VA itself sets no minimum score.
You pay a one-time funding fee between 1.4%-3.6% based on down payment and service type. No monthly mortgage insurance ever, which saves hundreds monthly compared to FHA on the same loan amount.
The down payment gap is significant: VA needs nothing upfront while FHA requires 3.5% minimum. On a $600,000 Loomis home, that's $0 versus $21,000 out of pocket.
Monthly costs differ more than most buyers expect. VA eliminates mortgage insurance entirely, while FHA charges it permanently on 3.5% down loans. That difference runs $250-400 monthly on typical Placer County loan amounts.
If you qualify for VA, use it. The zero down payment and no monthly mortgage insurance make it the strongest government-backed option available. The funding fee costs less than FHA's combined insurance premiums.
FHA makes sense when you don't meet VA eligibility requirements but need low down payment flexibility. It accepts slightly lower credit scores than most VA lenders will approve, and works for any qualified borrower regardless of military service.
Yes, VA loan entitlement restores after you sell and pay off the previous VA loan. You can also use remaining entitlement for a second property while keeping the first.
VA typically prices 0.125%-0.25% lower than FHA on the same borrower profile. Rates vary by borrower profile and market conditions.
Both take similar timeframes, usually 30-40 days. VA appraisals sometimes add a few days but the difference rarely impacts closing schedules.
Veterans with service-connected disabilities pay no VA funding fee. FHA mortgage insurance only drops if you refinance to conventional with 20% equity.
Strong offers work with either loan type. Some sellers worry about VA appraisals, but both programs appraise to similar standards in practice.