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in Highland, CA
Highland buyers choosing between conventional and VA loans face a real trade-off. Conventional loans demand a down payment but offer flexibility. VA loans require military service but eliminate the down payment entirely.
San Bernardino County's median household income sits at $82,184. That income supports mortgages well into the $300,000 to $400,000 range. Both loan types serve this market, but they work differently.
Conventional loans are the standard path for most Highland buyers. You'll put down 5% to 20% at closing. PMI applies if you put down less than 20%, but it cancels once you hit 80% equity.
Conventional loans go up to $832,750 in 2026. That ceiling covers nearly every purchase in Highland. Lenders typically want a 620 FICO minimum, though better rates come at 740 and above.
VA loans are the military benefit that keeps paying. If you served, you can borrow the full purchase price with zero down. A funding fee replaces PMI—typically 2.3% of the loan amount for first-time users.
VA loans also max out at $832,750 in Highland. The funding fee rolls into your loan balance. Credit requirements are often more flexible than conventional, though rates reflect the added cost.
The down-payment gap is the biggest difference. Conventional buyers typically put 5% to 10% down at closing. VA buyers put zero down. That gap matters most when savings are tight.
PMI versus funding fee is the second split. Conventional PMI is monthly and cancels over time. VA's funding fee is a one-time cost rolled into the loan. For a buyer staying five years or less, the funding fee often costs less.
VA wins on purchase power if you have no savings. Conventional wins on total cost if you can put 15% or more down. Both reach the same $832,750 ceiling in Highland.
Choose conventional if you have savings and want predictable costs. Buyers with $50,000 to $100,000 saved benefit from avoiding the funding fee. Your PMI drops off as you build equity. Conventional also works for non-military buyers with solid credit.
Choose VA if you served and savings are limited. Zero down means you keep cash for closing costs and repairs. The funding fee is a one-time expense, not an ongoing payment. VA is unbeatable for military buyers in Highland who want to preserve liquidity.
Yes. Honorable discharge qualifies you. Reserve and National Guard service also counts if you meet the minimum service requirement. Contact the VA to request your Certificate of Eligibility.
Conventional with 15%+ down typically costs less. VA's funding fee adds roughly 2.3% to your loan balance upfront. PMI on conventional drops off; VA's fee stays. Run both scenarios with your lender for exact numbers.
No. Conventional lenders usually want 620 FICO minimum; VA often accepts 580 or lower. Better credit gets better rates on both. Check with your lender for their specific floor.
PMI cancels once you reach 80% loan-to-value through payments or home appreciation. You can also refinance to remove it sooner. VA loans skip PMI entirely—the funding fee is the only mortgage insurance cost.
Yes. VA loans work nationwide. You don't need to be a California resident. Bring your Certificate of Eligibility and proof of income to your lender.