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in Millbrae, CA
Both FHA and VA loans serve Millbrae buyers who can't put 20% down. The difference comes down to eligibility and costs.
FHA works for anyone with decent credit. VA requires military service but offers the best terms in mortgage lending.
FHA loans let you buy with 3.5% down if your credit score hits 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums.
Maximum loan limits in San Mateo County run higher than standard conforming loans. Sellers can contribute up to 6% toward your closing costs.
You need two years of stable employment and a debt-to-income ratio under 43% in most cases. Gift funds cover your entire down payment if needed.
VA loans require zero down payment and charge no mortgage insurance ever. You pay a one-time funding fee that ranges from 1.4% to 3.6% based on service type.
Credit score minimums vary by lender but typically start around 620. The VA guarantees a portion of your loan, which makes lenders more flexible.
You must meet service requirements: 90 days active duty during wartime, 181 days during peacetime, or six years in reserves. Surviving spouses qualify too.
VA loans cost less monthly because you skip mortgage insurance. FHA charges 0.55% to 0.85% annually, which adds $300-$500 per month on a $650,000 Millbrae home.
FHA accepts lower credit scores and doesn't restrict who can apply. VA requires military service but rewards that service with superior loan terms.
The Fed signaled additional rate cuts coming later this year. Both loan types will benefit, but VA rates typically run 0.25% to 0.5% lower than FHA.
Use VA if you're eligible. The math is simple: zero down plus no mortgage insurance beats every alternative for military buyers.
Choose FHA when you don't have VA eligibility or your VA entitlement is tied up in another property. It's the next best option for low down payment financing.
Both loans work well in Millbrae's competitive market. Sellers accept them because they're government-backed and close reliably with the right preparation.
No. You can only have one primary residence loan at a time. You can refinance from FHA to VA or vice versa when it makes sense.
Both take 30-45 days typically. VA requires a Certificate of Eligibility which adds a few days if you don't have it ready upfront.
VA requires an appraisal with minimum property standards. FHA doesn't mandate inspections but does have appraisal safety requirements both loans enforce.
Yes, but the condo complex must be approved by FHA or VA. Many Millbrae complexes have existing approval already in place.
VA typically runs lower because it limits what lenders can charge. FHA allows higher fees but sellers can contribute more toward your costs.