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in Del Mar, CA
Both FHA and VA loans help buyers access Del Mar real estate with minimal down payments. The right choice depends entirely on your military status and long-term ownership plans.
FHA loans work for any qualified borrower with decent credit. VA loans require military service but eliminate down payments and monthly mortgage insurance entirely.
In a coastal market like Del Mar, that insurance difference adds up fast. We'll break down which loan saves you more money based on your specific situation.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus monthly premiums for the loan's life.
These loans max out at $1,149,825 in San Diego County for 2024. That covers most Del Mar condos and some smaller single-family homes, but not luxury coastal properties.
The catch is permanent mortgage insurance on loans over 90% LTV. On a $900,000 purchase, that's roughly $620 per month added to your payment forever.
FHA works well for first-time buyers or those rebuilding credit. The program accepts higher debt ratios and recent credit events that conventional lenders reject.
VA loans require zero down payment for eligible veterans and active-duty service members. There's no monthly mortgage insurance, which saves hundreds per month in Del Mar's price range.
You'll pay a one-time funding fee between 1.4% and 3.6% depending on down payment and service history. First-time users with zero down pay 2.3%, which can be rolled into the loan.
San Diego County's VA loan limit is $1,149,825 for full benefit with no down payment. Above that amount, you'll need a down payment to cover the difference.
The program allows 100% financing on properties up to four units. Closing cost assistance from sellers is capped at 4% of the purchase price.
The biggest difference is monthly cost. A $900,000 VA loan saves about $620 monthly compared to FHA because there's no mortgage insurance premium.
Eligibility separates these programs completely. VA requires military service with a Certificate of Eligibility. FHA accepts any qualified borrower regardless of background.
VA loans allow the seller to pay all your closing costs within the 4% cap. FHA limits seller concessions to 6% but buyers typically pay more out-of-pocket than with VA.
Both programs require the home to be your primary residence. Neither works for investment properties or second homes in Del Mar's rental market.
If you're eligible for VA, use it. The monthly savings and zero-down option beat FHA in nearly every scenario, especially in Del Mar's price range.
Choose FHA only if you don't qualify for VA benefits. It's the best low-down-payment option for non-military buyers with credit scores between 580 and 680.
Consider conventional with 5% down if your credit tops 700. You'll pay less insurance and can drop it entirely once you hit 20% equity.
Run the numbers on all three options before committing. We shop your scenario across 200+ lenders to find the lowest total monthly cost.
Yes, as long as the Del Mar home becomes your primary residence. You'll need remaining VA entitlement or must sell your current VA-financed home first.
VA loans typically price 0.125% to 0.25% lower than FHA. Rates vary by borrower profile and market conditions across both programs.
Yes, but the condo complex must be FHA or VA approved. Many Del Mar complexes have both approvals already in place.
Only by putting 10% down and waiting 11 years. VA has no monthly insurance regardless of down payment amount.
FHA minimums start at 580, but most lenders want 620+. VA has no official minimum, though 600+ gets the best pricing.
Both take 30-40 days typically. VA requires an additional appraisal step but timelines are similar with experienced lenders.