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in Elk Grove, CA
Both FHA and VA loans are government-backed. Both offer low or no down payment. But they serve very different borrowers.
In Elk Grove, we see a strong military community. That means VA loans come up constantly. Knowing the difference saves you money and hassle.
FHA loans are insured by the Federal Housing Administration. They require as little as 3.5% down with a 580 credit score.
FHA works for first-time buyers and repeat buyers alike. The trade-off is mortgage insurance — you pay it upfront and monthly, every year you hold the loan.
VA loans are guaranteed by the Department of Veterans Affairs. Zero down payment, no monthly mortgage insurance — that's a real edge.
Eligibility is the catch. You need qualifying military service, an honorable discharge, or surviving spouse status. If you qualify, this loan is hard to beat.
The biggest gap is mortgage insurance. VA has none. FHA borrowers pay an upfront premium plus monthly MIP — often adding hundreds per month.
VA rates also tend to run lower than FHA rates. Over a 30-year loan, that spread adds up fast. Rates vary by borrower profile and market conditions.
If you served and you're eligible, use your VA benefit. The monthly savings alone make it the stronger loan in almost every scenario.
If you're not eligible for VA, FHA is a solid path — especially with limited savings or a credit score in the 580–640 range. Don't let perfect be the enemy of approved.
Not on the same property. You pick one per purchase. VA-eligible borrowers almost always benefit more from using VA.
Correct — eligible borrowers can finance 100% of the purchase price. No down payment is required by the VA program.
FHA requires 580 for 3.5% down. VA has no official minimum, but most lenders want at least 580–620.
It's a one-time fee the VA charges instead of monthly mortgage insurance. Most borrowers roll it into the loan balance.
Yes. FHA sets county-level loan limits each year. Your loan amount must fall at or below the Sacramento County limit to qualify.
Both can close in 30 days with a prepared borrower. VA loans require a VA appraisal, which can add a few days in busy markets.