Question 1

Can I use a VA loan on a Hillsborough fixer-upper?

Accepted Answer

Only if it meets VA minimum property standards. Homes need functioning systems, safe structure, and no peeling paint. Cosmetic updates are fine but major repairs kill VA eligibility.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional lenders want 620 minimum, 740+ for best rates. VA loans often approve 580-600 scores. Lower scores mean higher rates on both programs.

Question 3

Which loan closes faster in San Mateo County?

Accepted Answer

Conventional loans close 7-10 days faster on average. VA appraisals take longer and flag more property issues that delay closing.

Question 4

Can I avoid the 2.15% VA funding fee?

Accepted Answer

Veterans with service-related disabilities get full exemption. First-time VA buyers putting 5%+ down pay reduced fees. Otherwise you'll pay the 2.15%.

Question 5

Does conventional or VA offer better rates right now?

Accepted Answer

Both hover near four-year lows as of February 2026. Rates vary by borrower profile and market conditions. Your credit score and down payment matter more than loan type.

Question 6

Will Hillsborough sellers reject VA offers?

Accepted Answer

Some do due to appraisal concerns and longer timelines. Strong pre-approval and quick closing requests help. Conventional offers compete better in multiple-bid situations.

Conventional vs VA Loans in Hillsborough: Which Mortgage Fits Your Budget?