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in Sacramento, CA
Sacramento has a large active-duty and veteran population. That means a lot of buyers here actually qualify for VA — and many don't realize it.
Both loans are government-backed with lenient credit standards. But they work very differently, and the wrong choice costs you money.
FHA loans require as little as 3.5% down with a 580 credit score. Drop below 580 and you'll need 10% down.
Every FHA loan carries mortgage insurance — both upfront and monthly. That cost doesn't go away until you refinance out of FHA.
VA loans require zero down payment and no monthly mortgage insurance. For Sacramento buyers with VA eligibility, that's a significant monthly savings.
You do pay a one-time VA funding fee at closing. Most borrowers roll it into the loan. Disabled veterans are exempt.
The biggest gap is mortgage insurance. FHA charges it every month regardless of your equity. VA never does.
FHA is available to any buyer who meets the requirements. VA is exclusive to veterans, active-duty service members, and eligible surviving spouses.
If you have VA eligibility, use it. The monthly savings over an FHA loan are real and they add up fast over 30 years.
If you don't have VA eligibility, FHA is a solid path. It's especially useful for buyers with lower credit or limited savings for down payment.
Not on the same property. You pick one. If you qualify for VA, it almost always makes more financial sense.
The VA doesn't set a hard minimum, but most lenders want at least a 580-620. We shop across 200+ lenders to find the best fit.
Not significantly. Both require property appraisals with government standards. Timeline depends more on the lender than the loan type.
Not while you're in an FHA loan. You'd need to refinance into a conventional loan once you have enough equity.
Veterans with a service-connected disability rating are exempt. Surviving spouses receiving dependency and indemnity compensation also qualify.
Both work for condos, but the complex must be approved for the loan type. VA and FHA maintain separate approved condo lists.