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in Folsom, CA
Both FHA and VA loans offer government backing that makes homeownership more accessible in Folsom. These programs reduce lender risk, which translates to better terms for borrowers who qualify.
The right choice depends on your military service status and financial situation. Understanding how these programs differ helps you maximize your benefits and minimize costs.
FHA loans require just 3.5% down with credit scores as low as 580. The Federal Housing Administration insures these mortgages, allowing lenders to approve borrowers who might not qualify for conventional financing.
You'll pay both an upfront mortgage insurance premium and monthly insurance. This insurance protects lenders if borrowers default, making the program sustainable for future homebuyers.
FHA loans work for any qualified buyer purchasing a primary residence in Folsom. The program has loan limits that vary by county, covering most home purchases in Sacramento County.
VA loans require zero down payment for eligible veterans and active-duty service members. The Department of Veterans Affairs guarantees a portion of the loan, eliminating the need for private mortgage insurance.
You'll pay a one-time funding fee that varies based on your down payment and whether you've used the benefit before. This fee can be rolled into your loan amount rather than paid upfront.
VA loans offer competitive rates and no monthly mortgage insurance. The program rewards military service with financial benefits that can save thousands over the life of your loan.
Eligibility separates these programs most clearly. FHA loans serve any qualified borrower, while VA loans require military service or survivor status with a valid Certificate of Eligibility.
Down payment requirements differ significantly. FHA requires 3.5% minimum, while VA loans allow zero down for eligible borrowers. This difference can mean tens of thousands in upfront costs.
Insurance costs work differently between programs. FHA charges both upfront and monthly mortgage insurance that stays for the loan's life in most cases. VA charges a one-time funding fee with no ongoing monthly insurance.
Credit flexibility varies between lenders. FHA has published minimum credit scores, while VA has no official minimum. Both programs are generally more forgiving than conventional loans.
Choose VA if you're eligible based on military service. The zero down payment and no monthly insurance provide substantial savings over FHA financing for qualified borrowers.
FHA makes sense for civilian buyers who need lower down payment options. The 3.5% minimum opens homeownership to buyers still building savings in Sacramento County.
Consider your long-term plans when comparing costs. VA's one-time funding fee may be higher initially but eliminates monthly insurance payments. FHA spreads costs across monthly payments but continues charging insurance indefinitely.
Talk with a licensed mortgage broker about your specific situation. Rates vary by borrower profile and market conditions, making personalized guidance essential for choosing correctly.
No, you choose one program per purchase. If you're eligible for both, VA typically offers better terms with zero down payment and no monthly mortgage insurance.
VA loans typically offer slightly lower rates due to the government guarantee and strong borrower profiles. Rates vary by borrower profile and market conditions.
Yes, but the condo project must be approved by the respective agency. VA and FHA maintain separate approved condo lists that lenders verify before approval.
Yes, if you're eligible for VA benefits. Many veterans start with FHA before discovering their VA eligibility, then refinance to eliminate mortgage insurance.
Timeline depends more on your lender than the program. Both typically close in 30-45 days with proper documentation and responsive communication.