Question 1

Can I use an FHA loan if I'm eligible for a VA loan?

Accepted Answer

Yes, but VA loans typically offer better terms with no down payment and no monthly mortgage insurance. Most eligible borrowers save money using their VA benefits instead of FHA financing.

Question 2

Which program has lower closing costs in Half Moon Bay?

Accepted Answer

VA loans often have lower overall costs due to restrictions on lender fees and no mortgage insurance. FHA requires upfront mortgage insurance of 1.75% of the loan amount plus monthly premiums.

Question 3

Do both programs work for Half Moon Bay condos?

Accepted Answer

Both FHA and VA loans can finance condos, but the complex must be approved by the respective agency. Many Half Moon Bay condos meet requirements for one or both programs.

Question 4

Can I avoid mortgage insurance with either loan type?

Accepted Answer

VA loans have no monthly mortgage insurance. FHA requires monthly mortgage insurance for the life of loans with less than 10% down, though 10% or more down limits it to 11 years.

Question 5

Which loan has easier credit requirements?

Accepted Answer

Both programs accept lower credit scores than conventional loans. FHA officially allows scores as low as 500, while VA has no set minimum, though individual lenders establish their own requirements.

FHA vs VA Loans in Half Moon Bay: Which Government-Backed Option Fits Your Needs?