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in Redlands, CA
Redlands buyers choosing between conventional and VA loans face a fundamental tradeoff: down payment versus rate. Conventional at 6.25% requires 20% down to avoid PMI. VA at 5.875% requires zero down and no mortgage insurance.
The 2026 conforming limit in San Bernardino County is $832,750, so both programs work here. Your choice hinges on eligibility, savings, and how much monthly payment matters.
Conventional at 6.25% works when you have substantial savings. At 20% down, there's no PMI and no mortgage insurance penalty.
Underwriting wants two years of work history and solid income documentation. The 740 FICO floor is standard across most lenders in California.
VA at 5.875% opens the door with zero down for eligible veterans and active duty. The funding fee (2.15% on first use, zero down) replaces traditional mortgage insurance.
You'll need a Certificate of Eligibility and 740 FICO. The full loan amount plus funding fee rolls into the mortgage.
The payment gap is real: VA saves $181 per month on principal and interest alone. Conventional requires $187,500 down upfront; VA requires nothing.
Conventional has no funding fee but demands 20% savings. VA's 2.15% funding fee is roughly $16,125 on a $750,000 loan, but it rolls into the mortgage instead of coming out of pocket.
VA's lower rate (5.875% vs 6.25%) reflects the government guarantee. Conventional's PMI-free status at 80% LTV is its own advantage—no ongoing insurance cost.
Pick conventional if you have $187,500 saved and want to avoid the funding fee. You'll own equity from day one and skip mortgage insurance entirely.
Choose VA if you're eligible and have limited liquid savings. The zero-down structure and lower rate beat conventional even after the funding fee rolls in.
Yes. At 20% down (80% LTV), conventional loans carry no PMI. Below 80% LTV, PMI applies and typically costs 0.5% to 1% annually.
Yes. Veterans, surviving spouses, and National Guard members with honorable discharge qualify. You'll need a Certificate of Eligibility from the VA.
On a $750,000 loan, conventional at 6.25% costs $4,618/month P&I. VA at 5.875% costs $4,437/month—a $181 monthly savings.
No. The 2.15% funding fee (~$16,125 on $750,000) rolls into the loan amount. You don't pay it upfront; it's financed over 30 years.
No. VA loans have no rate penalty for zero down. The rate reflects the government guarantee, not your down payment size.