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in Rocklin, CA
Rocklin buyers who qualify for VA loans face a genuine decision. Both conventional and VA financing work well here, but they serve different goals.
Your eligibility matters, but so does your financial picture. Each loan type carries distinct cost structures that affect your payment and closing expenses.
Conventional loans require 3-20% down depending on your loan-to-value goals. You'll pay private mortgage insurance below 20% down, which adds to your monthly payment.
Credit and income standards follow strict guidelines. Most lenders want 620+ credit and a debt-to-income ratio under 50%, though stronger profiles get better rates.
These loans close quickly because they don't need VA appraisals. You'll see more seller acceptance since conventional financing carries fewer inspection requirements than government loans.
VA loans let eligible veterans and active-duty service members buy with zero down. You'll pay a funding fee instead of PMI, and that fee gets rolled into your loan amount.
Credit requirements run more flexible than conventional. Many lenders approve 580+ scores, and the VA doesn't set a maximum debt-to-income ratio—just a guideline.
Sellers in competitive Rocklin markets sometimes hesitate on VA offers. The appraisal process checks for safety issues conventional appraisals skip, which can delay closing or kill deals.
The down payment gap matters most. Conventional needs 3-20% upfront while VA needs nothing, which saves veterans $15,000-$60,000+ on typical Rocklin homes.
Monthly costs flip the equation. VA's funding fee (1.4-3.6% of loan amount) stays lower than years of PMI payments, especially with small conventional down payments.
Appraisal requirements create the biggest friction point. VA appraisers flag peeling paint, missing handrails, and roof issues that conventional appraisers ignore—sellers know this and sometimes prefer conventional offers.
Use VA if you qualify and need to preserve cash. The zero-down benefit outweighs most drawbacks, especially for first purchases or investment property preservation.
Choose conventional when competing against other offers or buying fixer properties. You'll close faster and avoid VA's property condition requirements that can torpedo deals on older Rocklin homes.
Most single-family homes qualify, but the property must meet VA minimum standards. Fixer-uppers with safety issues won't pass appraisal.
In multiple-bid scenarios, yes. Sellers know VA appraisals are stricter and take longer, so they often pick conventional or cash offers.
First-time VA buyers pay 2.15% with zero down. That's $8,600 on a $400,000 purchase, rolled into your loan amount.
With 5% down or less, PMI typically costs more over five years. Run the numbers for your specific loan amount.
Yes, through VA refinancing. Many buyers use conventional to win the deal, then refinance to VA later to eliminate PMI.