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in Imperial Beach, CA
Imperial Beach sits minutes from Naval Base Coronado, making VA loans exceptionally common here. But conventional financing often beats VA for certain buyers, even those who qualify for military benefits.
The choice hinges on down payment capacity, property type, and how long you plan to own. Most Imperial Beach buyers I work with assume VA is always better for service members—that's not true in every deal.
Conventional loans work through Fannie Mae or Freddie Mac guidelines. You need 3% down minimum, 620+ credit, and stable income documentation.
With 20% down, you skip mortgage insurance entirely. Under 20%, you pay PMI until you hit 20% equity—but PMI drops off automatically, unlike VA funding fees that stick forever.
Condos and investment properties often approve easier with conventional than VA. Imperial Beach has many older condo complexes where VA approval is a headache.
VA loans let eligible military buyers purchase with zero down and no mortgage insurance. You pay a one-time funding fee—2.3% for first use with zero down, 3.6% for subsequent use.
Sellers can pay all your closing costs, and VA caps certain fees. Credit standards are lenient: 580 score works with many lenders, income requirements flex for disability pay.
VA entitlement in San Diego County goes to $766,550 with zero down. Above that, you need 25% of the difference as down payment—so a $900,000 purchase needs $33,362 down.
Down payment separates these loans most. VA offers zero down on homes to $766,550; conventional needs 3% minimum regardless of price.
Monthly costs flip the script. VA has no mortgage insurance but charges 2.3% upfront. Conventional with 5% down pays roughly 0.5% of the loan amount annually in PMI—that's $333/month on a $600,000 loan until you hit 20% equity.
Property approval matters in Imperial Beach's condo-heavy market. VA requires condo projects meet strict reserve and owner-occupancy rules. Many buildings near the pier don't qualify, leaving conventional as the only option.
Choose VA if you're staying long-term and have limited cash for down payment. The funding fee hurts less when spread over 30 years, and zero down preserves capital for repairs or emergencies.
Pick conventional if you're buying a condo that fails VA approval, purchasing investment property, or have 20% down saved. Skipping the funding fee and future PMI often saves money over five years.
Run the math on both. I've closed Imperial Beach deals where putting 10% down conventional beat VA by $18,000 over seven years, even with the zero-down advantage. Rates vary by borrower profile and market conditions.
No, you pick one loan per purchase. But you can use VA for your primary residence and conventional for a rental property simultaneously if income qualifies.
Not anymore. Both close in 21-30 days with competent lenders. VA appraisals add 3-5 days but rarely delay closing if ordered promptly.
Sellers favor buyers with 20% down conventional or strong pre-approval regardless of type. Zero-down offers get more scrutiny but don't fail more often with proper underwriting.
Yes, if you receive VA disability compensation. Otherwise, the fee applies to all VA purchases and refinances for non-disabled borrowers.
Conventional requires 620 minimum, 680+ for best rates. VA approves 580+ scores but most wholesale lenders want 600 to avoid rate hits.