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in El Cajon, CA
El Cajon buyers choosing between conventional and VA financing face a stark down-payment split. Conventional requires 20% down to avoid PMI at this price point. VA offers zero down for eligible veterans and active-duty service members.
San Diego County's median household income is $102,285, which supports mortgages well into the conforming range. The 2026 conforming limit is $1,104,000. Both programs work here, but the choice hinges on eligibility and cash reserves.
Conventional at 6.25% works when you have substantial savings for a down payment. At 80% LTV the monthly payment is $4,618 with no PMI. Underwriting requires solid income documentation and two years of work history.
PMI cancels automatically at 78% LTV under the Homeowners Protection Act. You can request cancellation at 80% LTV. This path suits buyers with real equity and stable employment.
VA at 5.875% is available to eligible veterans, active-duty service members, and surviving spouses with a Certificate of Eligibility. Zero down means no down payment required. The funding fee replaces PMI and rolls into the loan.
Monthly payment is $4,437 with no mortgage insurance. The funding fee is 2.15% on first-time use with zero down. Subsequent use runs 3.3% unless you have a 10% or higher VA disability rating.
The payment gap is $181 per month in VA's favor at this rate and loan size. Conventional requires $187,500 down; VA requires nothing. That's a meaningful cash difference at closing.
VA's lower rate reflects the funding fee structure and government backing. Conventional's higher rate assumes PMI protection. Both reach the conforming limit of $1,104,000 in 2026. VA wins this matchup outright when you have eligibility.
Choose conventional if you're not eligible for VA benefits but have substantial savings. You need $187,500 down to avoid PMI at this price. Stable W-2 income and two years of employment history are required.
Choose VA if you're a veteran, active-duty service member, or surviving spouse with a Certificate of Eligibility. Zero down and a lower rate make this the clear winner. The funding fee is a one-time cost that's worth the savings.
Yes. You must have a Certificate of Eligibility from the VA. Veterans, active-duty service members, and surviving spouses can request one online or through your lender. It's free and takes a few days.
At 6.25% conventional on $750,000 (80% LTV), the payment is $4,618. At 5.875% VA on $750,000 (zero down), it's $4,437. That's $181 per month in VA's favor.
No. PMI applies when you put down less than 20%. It cancels at 78% LTV automatically or at 80% LTV if you request it. The only way to skip PMI is 20% down.
No. The funding fee is a one-time cost (2.15% on first use with zero down) that rolls into your loan. PMI is an ongoing monthly payment. VA funding fee is cheaper overall.
Both programs typically require 740 FICO or higher for the best rates. Conventional may go lower with compensating factors. VA has no official minimum but lenders usually want 620+.