Loading
in Lemon Grove, CA
Most Lemon Grove buyers qualify for conventional loans. Service members get VA loans with zero down and no PMI.
Both work for Lemon Grove's mix of single-family homes and condos. The right choice depends on your military status and savings.
Conventional loans require 3% down minimum for primary homes. You pay PMI until you hit 20% equity, typically $100-300 monthly in Lemon Grove.
Credit score requirements start at 620 for most lenders. Rates improve dramatically at 680 and above, with best pricing at 740+.
You can use conventional financing for primary homes, second homes, or investment properties. Loan limits go up to $1,149,825 in San Diego County for 2024.
VA loans let eligible service members buy with zero down payment. You pay a funding fee instead of PMI, typically 2.15% for first-time use.
The VA backs these loans, so lenders accept lower credit scores. Most approve at 580-600, though rates improve above 640.
You can only use VA loans for primary residences in Lemon Grove. No investment properties or second homes, but you can reuse the benefit when you sell.
Down payment separates these loans most. VA borrowers pay nothing down while conventional buyers need at least 3%, or $12,000 on a $400,000 Lemon Grove home.
Monthly costs differ too. Conventional loans under 20% down carry PMI. VA loans never have PMI but charge an upfront funding fee you can roll into the loan.
Property standards matter with VA loans. The VA appraiser flags peeling paint, roof issues, and safety concerns that conventional appraisers might pass. Fixer-uppers rarely qualify for VA financing.
If you qualify for VA benefits, use them. Zero down and no PMI beat conventional financing in almost every scenario, especially with limited savings.
Choose conventional if you're buying a fixer-upper or investment property. Also pick conventional if the home won't pass VA property standards or you're not eligible for VA benefits.
Veterans buying move-in ready primary homes should default to VA. Everyone else uses conventional unless they qualify for other specialized programs.
Yes, but the complex must be VA-approved. Most established Lemon Grove condo communities already have approval, but always verify before writing an offer.
Expect $100-300 monthly depending on down payment and credit score. PMI drops off automatically when you reach 20% equity through payments or appreciation.
Not typically. VA appraisals add 3-5 days compared to conventional, but experienced lenders close both in 21-30 days with responsive borrowers.
Conventional starts at 620, with best rates at 740+. VA lenders often approve at 580-600, though you'll get better pricing above 640.
Some lenders offer lender-paid PMI with a higher rate. You pay more interest but no separate PMI payment, which helps with qualifying ratios.
No. The one-time 2.15% fee costs less than years of PMI on conventional loans. You save money over the loan term with VA financing.