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in Stockton, CA
Veterans and active-duty military in Stockton face a choice most civilians don't get: zero-down VA financing or conventional loans. Your service status unlocks benefits that change the math on what you can afford.
Most Stockton veterans we work with assume VA is always better. But conventional loans win in specific scenarios, especially repeat purchases or investment properties.
Conventional loans are standard mortgages without government backing. You need decent credit (typically 620+) and a down payment starting at 3% for first-time buyers.
These loans work for any property type and any buyer. No service requirements, no occupancy mandates beyond standard primary residence rules.
PMI costs money when you put down less than 20%, but it drops off automatically at 78% loan-to-value. Rates vary by borrower profile and market conditions.
VA loans are zero-down mortgages backed by the Department of Veterans Affairs. Eligible veterans, active military, and some surviving spouses qualify.
No PMI ever, regardless of down payment. You pay a one-time VA funding fee (1.4-3.6% depending on service type and down payment) that rolls into the loan.
Appraisals are stricter than conventional—VA inspectors flag maintenance issues that could affect value. Sellers sometimes push back on required repairs.
Down payment is the obvious split: VA needs zero, conventional needs at least 3%. But the real cost difference shows up in monthly payments.
A $450,000 Stockton home with 5% down conventional carries about $180/month in PMI. The same home VA-financed has no PMI but adds roughly $6,300 in upfront funding fee.
Credit flexibility matters too. VA loans approve borrowers with credit scores that would get rejected for conventional. And VA allows higher debt ratios—up to 50% in some cases.
Property restrictions hit harder with VA. That fixer-upper with foundation cracks? Conventional will finance it. VA won't touch it until repairs are done.
Use VA for your first Stockton home if you're eligible. The zero-down benefit gets you in sooner, and no PMI saves real money monthly.
Switch to conventional when buying investment property, vacation homes, or your second purchase while keeping your first VA loan active. VA limits how many loans you can have simultaneously.
Go conventional if the Stockton property needs work. We've seen deals fall apart when VA appraisers require repairs sellers won't make. Conventional gives you more options on distressed properties.
First-time disabled veterans get the funding fee waived entirely. That's a no-brainer—use VA every time in that situation.
Yes, you can hold both simultaneously. Many veterans keep their first home with a VA loan and use conventional financing for a second property or investment.
Some do because VA appraisals are stricter and can delay closing. But strong VA offers with pre-approval compete just fine in most Stockton neighborhoods.
Not always. With 20% down, conventional has no PMI and may offer better rates. Run the numbers on both before deciding.
Yes, eligible veterans can refinance conventional loans into VA loans. This works well when you want to drop PMI or lower your rate.
Conventional typically requires 620+. VA technically has no minimum, but most lenders want 580-600 to approve the loan.