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in Mountain House, CA
Mountain House buyers often qualify for both FHA and VA loans. Both programs offer lower down payments than conventional mortgages, but they serve different borrowers with different rules.
The right choice depends on your military status and how much you want to spend upfront. VA loans beat FHA on cost if you qualify, but FHA remains the go-to for non-veterans who need flexibility.
FHA loans require just 3.5% down with a 580 credit score. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums between 0.55% and 1.05% of your loan amount.
These loans work for primary residences only. Mountain House buyers use FHA when they don't have military service or when sellers prefer this widely-used program over VA.
VA loans require zero down payment for eligible veterans and service members. You pay a one-time funding fee ranging from 1.4% to 3.6% depending on service type and down payment, but no monthly mortgage insurance.
Travis Air Force Base sits 30 miles west of Mountain House. Many local buyers qualify for VA benefits and use them to skip the down payment entirely while securing competitive rates.
VA loans cost less over time because they eliminate monthly mortgage insurance. On a $600,000 Mountain House home, FHA mortgage insurance adds $400-600 monthly while VA has none.
FHA serves anyone who qualifies. VA requires military service but rewards it with better terms. Credit standards are similar, though VA lenders sometimes accept lower scores with strong compensating factors.
Use VA if you qualify. The zero down payment and no mortgage insurance save thousands yearly compared to FHA. The higher upfront funding fee gets offset within 12-18 months by monthly savings.
Choose FHA if you lack military eligibility or if the seller resists VA appraisal requirements. Some Mountain House sellers prefer FHA because it's more common and has fewer property condition restrictions than VA.
Yes, but the condo complex must be FHA or VA approved. Many Mountain House developments qualify, but verify approval status before making an offer.
VA loans typically offer rates 0.25%-0.50% lower than FHA. Both programs provide competitive rates compared to conventional mortgages.
No. VA loans have no monthly mortgage insurance regardless of down payment. You pay only the one-time funding fee.
Use VA anyway. The zero down requirement means you can save that 3% for closing costs or reserves while avoiding monthly mortgage insurance.
Yes through refinancing. Many veterans start with FHA then refinance to VA once they understand the savings from eliminating mortgage insurance.