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in Manteca, CA
Both FHA and VA loans help Manteca buyers with limited cash get approved. FHA works for anyone with decent credit, while VA requires military service but offers better terms.
The right choice depends on whether you qualify for VA benefits. If you're eligible for a VA loan, it usually beats FHA on cost and down payment.
FHA loans require 3.5% down with credit scores as low as 580. You'll pay upfront mortgage insurance (1.75% of loan amount) plus monthly premiums for the life of the loan on most purchases.
Sellers can contribute up to 6% toward closing costs, helping with upfront expenses. FHA loan limits in San Joaquin County are $498,257 for single-family homes, covering most Manteca properties.
VA loans require zero down payment for eligible veterans and service members. There's no monthly mortgage insurance, just a one-time funding fee (2.3% for first use, waived for disabled vets).
VA loans in San Joaquin County have no strict loan limit for qualified borrowers. Credit requirements are flexible, often accepting scores around 620, and sellers can pay up to 4% toward buyer costs.
Down payment separates these programs most. FHA needs 3.5% saved, while VA needs nothing. On a $450,000 Manteca home, that's $15,750 versus zero.
Monthly costs differ significantly too. FHA charges ongoing mortgage insurance that adds $200-300 monthly. VA has no monthly insurance, lowering your payment and making more house affordable.
Eligibility is the dealbreaker. VA requires military service with qualifying discharge status. FHA accepts anyone who meets credit and income standards.
If you qualify for VA benefits, use them. The zero down and no monthly insurance save tens of thousands over the loan term compared to FHA.
Choose FHA if you're not military-connected or already used your VA entitlement. It's still one of the most accessible programs for buyers with limited savings in Manteca.
Both programs allow gift funds for down payment and closing costs. Both accept non-occupant co-borrowers to boost qualifying income.
Yes, VA and FHA are separate programs. You can use VA even if you currently have an FHA loan on another property.
VA loans typically price 0.25-0.50% lower than FHA. Rates vary by borrower profile and market conditions, but VA consistently wins on pricing.
Yes, both FHA and VA finance manufactured homes if they meet program standards. The home must be on a permanent foundation and meet safety requirements.
Veterans with service-connected disabilities are exempt from the funding fee. Purple Heart recipients also qualify for the waiver regardless of disability percentage.
You can refinance FHA to conventional once you hit 20% equity. This eliminates mortgage insurance entirely, lowering your payment.