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in Folsom, CA
Folsom attracts a lot of military families. With Mather and McClellan nearby, VA eligibility is common here.
If you qualify for VA, the comparison isn't close on paper. But conventional loans still win in certain situations.
Conventional loans aren't backed by the government. Lenders take on more risk, so they set stricter credit and income requirements.
You'll need at least a 620 credit score. Put down 20% and you skip private mortgage insurance entirely.
VA loans are guaranteed by the Department of Veterans Affairs. That guarantee lets lenders offer zero down and no monthly mortgage insurance.
Eligible borrowers include veterans, active-duty service members, and surviving spouses. You'll need a Certificate of Eligibility to start.
Local decision guide
Use this comparison to weigh Conventional Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Folsom.
Folsom attracts a lot of military families. With Mather and McClellan nearby, VA eligibility is common here.
If you qualify for VA, the comparison isn't close on paper. But conventional loans still win in certain situations.
Conventional loans aren't backed by the government. Lenders take on more risk, so they set stricter credit and income requirements.
The biggest gap is upfront cost. VA buyers can close with no down payment. Conventional buyers need cash at the table.
HousingWire flagged the 30-year fixed at 6.57% with applications falling sharply. VA rates typically run below that mark, which matters when every basis point affects your monthly payment. Rates vary by borrower profile and market conditions.
VA loans carry a funding fee — usually 2.15% for first-time use. That replaces monthly PMI. Most buyers still come out ahead over time.
If you're VA-eligible and buying a primary home in Folsom, use your benefit. Zero down and no PMI is hard to beat.
Conventional makes more sense if you're buying a second home, an investment property, or you've already used your full VA entitlement.
High credit scores and large down payments close the gap. At 20% down on conventional, you're not paying PMI either — and the funding fee disappears.
No. VA loans require owner occupancy. They only work for primary residences.
Not if you have full VA entitlement. Borrowers with full entitlement can exceed conforming limits without a down payment.
Veterans with a service-connected disability rating are exempt. Everyone else pays it, but it can be rolled into the loan.
VA is generally more flexible on credit and debt-to-income ratios. Conventional standards are stricter, especially below a 680 score.
Yes. You can hold a conventional loan on one property and use remaining VA entitlement on another.
Yes. PMI applies until you reach 20% equity. It drops off automatically at 22% under federal law.