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in San Francisco, CA
San Francisco is one of the most expensive housing markets in the country. Your loan choice can mean tens of thousands of dollars in upfront costs.
Conventional and VA loans both work here — but they serve very different borrowers. Knowing which fits your situation saves time and money.
Conventional loans are not backed by the government. Lenders set their own guidelines within Fannie Mae and Freddie Mac standards.
You need at least a 620 credit score. Strong credit — 740 and above — gets you the best rates. Down payments start at 3% for some programs.
Private mortgage insurance (PMI) applies if you put down less than 20%. PMI adds to your monthly payment until you hit 20% equity.
VA loans are guaranteed by the Department of Veterans Affairs. Eligible veterans, active-duty members, and surviving spouses qualify.
There is no down payment requirement and no monthly mortgage insurance. That is a major advantage in a high-price market like San Francisco.
VA loans carry a funding fee — a one-time cost rolled into the loan. First-time use is typically 2.15% of the loan amount for no-down purchases.
Local decision guide
Use this comparison to weigh Conventional Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in San Francisco.
San Francisco is one of the most expensive housing markets in the country. Your loan choice can mean tens of thousands of dollars in upfront costs.
Conventional and VA loans both work here — but they serve very different borrowers. Knowing which fits your situation saves time and money.
Conventional loans are not backed by the government. Lenders set their own guidelines within Fannie Mae and Freddie Mac standards.
HousingWire flagged the 30-year fixed hitting 6.57% recently, with applications dropping sharply. VA loans typically price below conventional — that gap matters at SF price levels.
Conventional loans require PMI without 20% down. On a $1M+ San Francisco purchase, that PMI bill is not small. VA eliminates it entirely.
Conventional loans have no eligibility restrictions. Any qualified borrower can apply. VA requires military service history and a Certificate of Eligibility.
If you served and qualify for VA, use it. Especially in San Francisco. Skipping the down payment and PMI on a $900K+ purchase is a serious financial advantage.
Conventional makes sense if you have 20% saved, strong credit, and want flexibility — or if you simply do not qualify for VA benefits.
Rates vary by borrower profile and market conditions. Talk to us before assuming one option is cheaper. We pull quotes from 200+ lenders to find your best fit.
Yes. VA loans have no county loan limits for eligible borrowers with full entitlement. San Francisco's high prices are not a barrier.
No down payment is required if you have full VA entitlement. That applies regardless of purchase price.
Lenders require at least 620. You need 740 or higher to qualify for the most competitive conventional rates.
Usually yes. Skipping the down payment and eliminating PMI saves most SF buyers far more than the one-time funding fee costs.
Conventional loans often close faster. VA loans require a VA appraisal, which adds a step and can extend the timeline slightly.
Yes, in some cases. Remaining VA entitlement determines what's available. A broker can run the numbers for your specific situation.