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in Portola, CA
Portola buyers have two strong loan options, but they work very differently. Conventional loans require down payments and strong credit, while VA loans offer zero-down financing for eligible veterans.
The right choice depends on your service history and financial position. Most veterans save thousands by using their VA benefit, but conventional loans work better for some situations.
Conventional loans are standard mortgages sold to Fannie Mae or Freddie Mac. You typically need 620+ credit and at least 3% down, though 20% down avoids mortgage insurance.
These loans max out at $806,500 in Plumas County for 2025. Interest rates depend on your credit score and down payment, with better terms when you put more money down.
VA loans are guaranteed by the Department of Veterans Affairs for eligible service members and veterans. You pay zero down and no monthly mortgage insurance, which saves serious money over time.
There's a one-time funding fee (1.4-3.6% depending on service type and use), but it rolls into the loan. Sellers can pay all closing costs in Portola, making this a true zero-out-of-pocket option.
The biggest split is down payment. VA loans require nothing down while conventional loans need 3-20%. That's $12,000-$80,000 on a $400,000 Portola home.
VA loans also skip mortgage insurance entirely. On a conventional loan with 5% down, you'd pay $200+ monthly for PMI until you hit 20% equity. VA borrowers never pay that.
If you qualify for VA benefits, use them. The zero-down feature and no PMI save tens of thousands over the loan term. Some rural Portola properties with well water or septic might need extra inspection work to pass VA standards.
Conventional loans make sense when you're ineligible for VA or buying a property that won't meet VA requirements. They're also better for investment properties or second homes, which VA loans don't cover.
Yes, if it's your primary residence and passes VA property standards. Wells and septic systems need testing, and the home must meet basic safety requirements.
On a $400,000 home, zero down saves $12,000-$80,000 upfront versus conventional financing. You also avoid $200+ monthly PMI that conventional buyers pay under 20% down.
Not typically. Both loan types close in 30-45 days. VA appraisals can take slightly longer in rural Plumas County due to fewer comparable sales.
VA loans often approve at 580-600 credit. Conventional loans prefer 620+ for best rates, though some lenders go to 580 with larger down payments.
Yes, if you receive VA disability compensation or are a surviving spouse. Otherwise, the fee applies but gets financed into your loan amount.