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El Cajon buyers shopping for government-backed mortgages face a real choice between FHA and VA loans. Both let you put down less than conventional lenders require.
San Diego County's median household income of $102,285 qualifies most local buyers for either program. The 2026 loan limit for both is $1,104,000.
FHA at 5.75% interest lets you buy with just 3.5% down. A 580+ FICO score opens the door to this program.
Mortgage insurance premium (MIP) runs for life if you put down less than 10%. At 10% or more down, MIP cancels after 11 years. Upfront MIP is 1.75% of the loan amount, rolled into your mortgage.
VA at 5.75% interest requires zero down for eligible borrowers. No mortgage insurance, no down payment required.
The funding fee replaces PMI entirely. First-time VA users pay 2.15%; subsequent uses pay 3.3%. A 10% or higher VA disability rating exempts you from this fee.
Local decision guide
Use this comparison to weigh FHA Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in El Cajon.
El Cajon buyers shopping for government-backed mortgages face a real choice between FHA and VA loans. Both let you put down less than conventional lenders require.
San Diego County's median household income of $102,285 qualifies most local buyers for either program. The 2026 loan limit for both is $1,104,000.
FHA at 5.75% interest lets you buy with just 3.5% down. A 580+ FICO score opens the door to this program.
FHA requires a down payment; VA doesn't. With FHA, you're paying mortgage insurance monthly for years. VA's funding fee is a one-time cost rolled into the loan.
Credit requirements differ sharply. FHA accepts 580+ FICO; VA typically requires 620+. For El Cajon buyers with limited savings, FHA opens the door. For veterans, VA is almost always the better choice.
FHA is right for non-military buyers with modest savings and fair credit. You have limited cash but a solid 740 FICO score.
VA is right for eligible veterans and active-duty service members. Zero down means no savings required. The funding fee costs less over time than FHA's lifetime mortgage insurance.
Yes. Active-duty service members qualify for VA loans with a Certificate of Eligibility. Zero down and no mortgage insurance apply to you.
No. FHA requires mortgage insurance (MIP) for the life of the loan if you put down less than 10%. VA has no mortgage insurance—the funding fee replaces it entirely.
Both programs show $4,377 monthly P&I at 5.75% on a $750,000 loan. FHA includes MIP in that payment; VA includes the funding fee cost.
Yes. A 10% or higher VA disability rating exempts you from the funding fee entirely. Without that rating, you'll pay 2.15% (first use) or 3.3% (subsequent use).
FHA requires 580+ FICO minimum. VA typically wants 620+ but has no official floor. Both are more flexible than conventional loans on credit.
in El Cajon, CA