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in Montclair, CA
Montclair buyers choosing between conventional and VA loans face a real trade-off. One requires a down payment and carries mortgage insurance. The other demands no down payment but adds a funding fee to your loan balance.
The 2026 conforming limit in San Bernardino County is $832,750. VA loans top out at the same ceiling. FHA maxes at $690,000. For most Montclair purchases under $832,750, both conventional and VA are on the table.
Conventional loans are the baseline. You put down 5% to 20%, and the lender requires mortgage insurance if you're below 20% equity. That insurance protects the lender, not you, and it stays on your loan until you hit 80% LTV or refinance.
The appeal is simplicity. No special eligibility. No funding fees. No occupancy rules. Conventional works for anyone with decent credit and enough cash for a down payment.
VA loans are exclusive to eligible veterans, active-duty service members, and surviving spouses. The headline benefit is zero down. You don't need to save a down payment. The lender is protected by a funding fee rolled into the loan amount instead.
The funding fee ranges from 2.3% to 3.6% of the loan amount depending on down payment and prior VA use. That fee gets added to what you borrow, so your loan is slightly larger than the purchase price. No monthly mortgage insurance, though.
The down-payment gap is the biggest practical difference. VA lets you buy with zero cash at closing. Conventional demands at least 5%. For a buyer with limited savings, that's a meaningful advantage.
Mortgage insurance vs. funding fee is the second difference. Conventional buyers below 20% down pay monthly MI until they hit equity. VA buyers pay the fee once, upfront, and never pay insurance again.
Pick conventional if you have cash saved and no military service. You'll close faster without VA paperwork. Your rate may be slightly lower. You avoid the funding fee.
Pick VA if you're eligible and have limited savings. Zero down is real money in your pocket. The funding fee is a one-time cost, not a monthly drain.
No. VA loans require you to occupy the home as your primary residence. Investment properties and second homes don't qualify. Conventional loans have no occupancy rule.
No. The funding fee is a one-time cost added to your loan at closing. It doesn't disappear. You pay it once and never again, even if you refinance with another VA loan later.
Conventional typically closes in 30–45 days. VA loans take 45–60 days because the VA must issue a certificate of eligibility and the appraisal process is stricter. Both timelines depend on your lender and documentation speed.
No. At 20% down, you skip mortgage insurance entirely on a conventional loan. That's the magic number where the lender's risk drops enough to waive MI. VA loans never charge monthly insurance, regardless of down payment.
It depends on your down payment and loan amount. A VA buyer with zero down pays a higher loan balance (due to the funding fee) but no monthly insurance. A conventional buyer with 10% down pays a smaller loan but adds monthly MI.