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in Roseville, CA
Roseville buyers often ask whether FHA or VA financing makes more sense. Both offer better terms than conventional loans, but they serve different borrowers with different requirements.
FHA opens homeownership to anyone with decent credit and a small down payment. VA rewards military service with zero down and no mortgage insurance—if you qualify.
FHA loans require just 3.5% down if your credit score hits 580. That means $14,000 down on a $400,000 Roseville home instead of the $80,000 a conventional 20% down payment demands.
You'll pay mortgage insurance for the loan's life—0.85% annually on most loans. Sellers can contribute up to 6% toward your closing costs, which helps when cash is tight.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee—typically 2.3% for first-time use—but disabled veterans get that waived entirely.
Credit requirements flex lower than conventional loans, and VA doesn't set a minimum score. Lenders usually want 620 or better, but we've closed VA loans in the high 500s when the file is strong.
The biggest split is down payment—VA requires nothing while FHA needs 3.5%. On a $450,000 purchase in Roseville, that's $15,750 you either need or don't.
Monthly costs differ sharply too. FHA charges 0.85% annually in mortgage insurance—$319 monthly on that $450,000 loan. VA has no monthly insurance, just the upfront funding fee you can roll into the loan.
If you have VA eligibility, use it. Zero down and no mortgage insurance beat FHA in almost every scenario unless your funding fee somehow exceeds FHA's lifetime insurance costs.
FHA makes sense when you're not military-connected or when you've already used your VA entitlement on another property. It's the fallback that still beats conventional financing for buyers without 10-20% down.
No. You choose one loan type per property. If you have VA eligibility, use it—the terms beat FHA across the board.
FHA requires 580 for 3.5% down. VA has no official minimum, but most lenders want 620—we've closed lower with strong compensation factors.
Both take 30-40 days typically. VA appraisals can add a few days if the appraiser is backlogged, but it rarely delays closing.
No. FHA charges lifetime mortgage insurance regardless of down payment size. For 20% down scenarios, conventional loans make more sense.
Both programs cover loan amounts up to $806,500 in Placer County for 2024. That handles most Roseville inventory comfortably.