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in Escalon, CA
Escalon buyers face a straightforward choice: conventional financing with more flexibility or VA benefits with zero down. Most borrowers qualify for conventional loans, but veterans and service members get advantages that often beat traditional mortgages.
The right pick depends on your military status and cash position. VA loans eliminate down payments and monthly mortgage insurance, while conventional loans work for any buyer with decent credit and some savings.
Conventional loans require 3-20% down depending on your goals. You'll pay PMI on anything under 20% down until you hit 20% equity, which adds $75-200 monthly on typical Escalon homes.
Credit needs start at 620, but better rates kick in at 700+. These loans work for primary homes, second homes, and investment properties across San Joaquin County with consistent underwriting standards.
VA loans put zero down and skip monthly mortgage insurance entirely. You pay a one-time funding fee that ranges from 1.4-3.6% based on down payment and first-time use, but it rolls into your loan amount.
These loans require a Certificate of Eligibility proving military service. Rates typically beat conventional by 0.25-0.5%, and Escalon sellers generally accept VA offers without hesitation in this market.
Down payment separates these options immediately. VA requires nothing upfront while conventional demands at least 3%, which equals $12,000-15,000 on median Escalon homes.
Monthly costs differ significantly too. VA skips mortgage insurance completely, saving $150-200 monthly compared to conventional loans under 20% down. Credit standards are similar, though VA allows slightly more flexible debt ratios in practice.
If you qualify for VA benefits, use them. The combination of zero down and no PMI beats conventional financing in almost every scenario, especially for first-time buyers without large savings.
Pick conventional when buying investment property, second homes, or if you're not eligible for VA. It's also the better choice when putting 20%+ down anyway, since you avoid both PMI and the VA funding fee.
VA loans work on primary residences only, including single-family homes and 2-4 unit properties where you occupy one unit. Investment properties and pure vacation homes don't qualify.
Expect $100-200 monthly on typical Escalon purchases with less than 20% down. The exact amount depends on your credit score, down payment size, and loan amount.
Not in this market. VA appraisals occasionally come in lower than asking prices, but the difference rarely affects acceptance rates in San Joaquin County.
Both accept 620 minimum scores. VA lenders sometimes approve marginal credit that conventional underwriters decline, but expect better rates at 700+ either way.
Veterans with service-connected disabilities get full funding fee waivers. Otherwise, you'll pay 1.4-3.6% rolled into your loan amount at closing.
Both take 25-35 days typically. VA loans sometimes add 3-5 days for Certificate of Eligibility processing if you haven't obtained it beforehand.