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in Rancho Cordova, CA
Rancho Cordova has a large veteran and active-duty population tied to nearby military installations. That makes VA loans a serious option here — not just a footnote.
Conventional loans still win for many buyers. But if you have VA eligibility, ignoring it is leaving money on the table.
Conventional loans aren't backed by any government agency. Lenders set their own standards, but most follow Fannie Mae and Freddie Mac guidelines.
You'll need at least a 620 credit score. Put down 20% and you skip private mortgage insurance (PMI) — the monthly fee that protects the lender, not you.
VA loans are guaranteed by the Department of Veterans Affairs. Eligible borrowers can buy with zero down and no PMI — ever.
There's an upfront funding fee, typically 2.15% for first-time use. It can be rolled into the loan. Many veterans with service-connected disabilities are exempt.
The biggest gap is cash to close. VA buyers can get in with almost nothing down. Conventional buyers putting down less than 20% pay PMI every month until they hit enough equity.
HousingWire flagged the 30-year fixed hitting 6.57% — that makes VA's typically lower rates more valuable right now. Rates vary by borrower profile and market conditions.
If you have VA eligibility, start there. The zero-down, no-PMI combination is hard to beat — especially if your savings are limited.
Conventional makes more sense if you're buying a rental, a vacation home, or if you want to preserve your VA entitlement for a future purchase.
Yes. VA entitlement can be restored after you sell and pay off a VA loan. You can also have two VA loans at once in some cases.
They used to. Today, VA loans close in roughly the same time as conventional. The VA appraisal can add a few days.
VA does. The VA appraiser checks safety and livability standards. Conventional appraisals focus mainly on value.
Yes, if you receive VA disability compensation. Your lender can confirm your exemption status before closing.
Only if you put down less than 20%. PMI drops off once you reach 20% equity in the home.
Eligible veterans should seriously consider VA first. The no-down, no-PMI structure fits the area's military community well.