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in Rancho Cordova, CA
Both FHA and VA loans offer low barriers to entry. But they serve very different borrowers.
Rancho Cordova has a strong military presence. If you've served, VA almost always beats FHA. If you haven't, FHA is your best low-down-payment option.
FHA loans are insured by the Federal Housing Administration. Lenders require a 580 credit score for the 3.5% down option.
FHA accepts gift funds for the down payment. That makes it a real option for first-time buyers without savings built up.
VA loans are guaranteed by the Department of Veterans Affairs. Zero down payment, no monthly mortgage insurance.
Eligible borrowers include veterans, active-duty service members, and surviving spouses. The VA funding fee applies but can be rolled into the loan.
FHA charges monthly mortgage insurance regardless of your down payment size. VA has no monthly mortgage insurance — ever.
VA rates typically run lower than FHA rates. That gap adds up fast over a 30-year loan. Rates vary by borrower profile and market conditions.
If you're a veteran or active-duty service member, use your VA benefit. The monthly savings from no mortgage insurance are significant.
If you haven't served, FHA is the go-to for buyers with limited savings or credit scores in the 580-640 range. Don't overthink it.
No — you use one or the other. If you're VA-eligible, you'd rarely choose FHA over it.
VA removed loan limits for borrowers with full entitlement. You can borrow above conforming limits with zero down.
FHA is more flexible on credit. VA has no official minimum, but most lenders want at least a 580-620 score.
Almost always. No down payment and no monthly mortgage insurance saves thousands per year.
It's a one-time fee paid to the VA. It can be rolled into the loan and replaces monthly mortgage insurance entirely.
No. FHA requires owner occupancy. VA has the same rule — both are for primary residences only.