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in Barstow, CA
Barstow homebuyers have access to both conventional and VA loan options. Each loan type offers distinct advantages depending on your financial situation and military service status.
Conventional loans provide flexibility for most qualified borrowers. VA loans deliver unique benefits for veterans and active-duty service members. Understanding the differences helps you make the best choice for your home purchase in San Bernardino County.
Conventional loans are traditional mortgages not backed by a government agency. They offer flexible terms and competitive rates for qualified borrowers. These loans follow guidelines set by Fannie Mae and Freddie Mac.
You typically need a credit score of at least 620 for conventional financing. Down payments can range from 3% to 20% or more. If you put down less than 20%, you'll pay private mortgage insurance until you reach 20% equity.
Rates vary by borrower profile and market conditions. Conventional loans work well for buyers with strong credit and stable income. They're available for primary homes, second homes, and investment properties throughout Barstow.
VA loans are government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses. The biggest advantage is zero down payment required. You can finance 100% of the home's purchase price.
VA loans don't require private mortgage insurance, which saves money monthly. There is a one-time VA funding fee, but it can be rolled into the loan. Credit requirements are often more flexible than conventional loans.
Rates vary by borrower profile and market conditions. VA loans are only for primary residences in Barstow, not investment properties. You must have valid military service credentials and obtain a Certificate of Eligibility.
The most significant difference is eligibility: anyone can apply for conventional loans, but VA loans require military service. Down payment requirements also differ dramatically. Conventional loans typically need at least 3% down, while VA loans require nothing down.
Mortgage insurance works differently between these programs. Conventional loans require PMI with less than 20% down payment. VA loans never require PMI but do charge a one-time funding fee. Property type restrictions matter too—VA loans only work for primary residences.
Credit flexibility varies between the two options. VA loans often accommodate lower credit scores than conventional loans. Both programs offer competitive interest rates, though VA rates are sometimes slightly lower for qualified borrowers.
Choose a VA loan if you're eligible and buying a primary residence in Barstow. The zero down payment and no PMI benefits can save tens of thousands of dollars. It's especially valuable if you have limited savings for a down payment.
Consider a conventional loan if you're not military-eligible or buying an investment property. They're also good if you have substantial down payment funds and want to avoid the VA funding fee. Conventional loans offer more property type flexibility.
Your specific financial situation matters most when deciding. Compare total costs including down payment, monthly payments, and closing costs. A qualified mortgage broker can help you evaluate both options based on your unique circumstances in San Bernardino County.
VA loans are only for primary residences, not vacation homes or investment properties. The home must meet VA property standards and you must intend to live there as your main residence.
VA loans often have lower monthly payments because they require no PMI and allow zero down payment. However, actual payments depend on your interest rate, loan amount, and property taxes.
Conventional loans typically require at least 620 credit score. VA loans are more flexible and may accept lower scores depending on other factors. Each lender has specific requirements.
You can refinance from a conventional loan to a VA loan if you're eligible. This is called a VA refinance and can help you eliminate PMI or reduce your interest rate.
Both loans have similar closing costs like appraisals and title fees. VA loans add a funding fee but limit what lenders can charge veterans. Sellers can pay some buyer costs with both loan types.