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in Pacifica, CA
Buying a home in Pacifica means choosing the right financing for your coastal property. Conventional and VA loans serve different borrower needs in San Mateo County's competitive market.
Veterans and active military members have access to VA loans with unique benefits. Other buyers typically use conventional financing. Understanding both options helps you make the best choice for your situation.
Conventional loans are traditional mortgages not backed by a government agency. They offer flexible terms and competitive rates for qualified borrowers throughout Pacifica and San Mateo County.
These loans typically require a down payment of 3% to 20% depending on your profile. You'll need solid credit and verifiable income. Private mortgage insurance applies when you put down less than 20%.
Conventional financing works for primary homes, second homes, and investment properties. You can use it for condos near the beach or single-family homes in the hills.
VA loans are government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses. The biggest advantage is zero down payment on your Pacifica home purchase.
These loans don't require monthly mortgage insurance, which saves money over time. You'll pay a one-time funding fee, but this can be rolled into your loan amount. Interest rates are often competitive.
VA loans must be used for primary residences only. The property needs to meet VA appraisal standards, which include specific safety and livability requirements.
The down payment difference is substantial. VA loans require nothing down, while conventional loans need at least 3%. For a Pacifica home, that could mean tens of thousands of dollars in upfront costs.
Monthly payments differ too. Conventional loans under 20% down include PMI, which adds to your payment. VA loans skip this insurance but charge a funding fee at closing instead.
Eligibility separates these options clearly. VA loans require military service verification through a Certificate of Eligibility. Conventional loans are open to anyone who meets credit and income standards.
Property use matters significantly. Conventional loans work for vacation homes and rentals in Pacifica. VA loans only finance primary residences where you'll actually live.
Veterans and active military should seriously consider VA loans for Pacifica purchases. The zero down payment and no PMI combination creates significant savings, especially in San Mateo County's higher-priced market.
Conventional loans make sense if you're buying a second home near the beach or an investment property. They're also your only option if you don't have military service eligibility.
Some veterans still choose conventional financing. If you have substantial savings for a large down payment, conventional terms might work better. Each situation is unique. Rates vary by borrower profile and market conditions.
Yes, veterans can choose conventional financing. Some prefer it for second homes or when they want to preserve VA eligibility for future purchases. Compare both options for your situation.
Not necessarily. VA appraisals add a few days, but experienced lenders process both loan types efficiently. Timeline depends more on your documentation readiness than loan type.
Yes, if the condo complex is VA-approved. The building must meet VA standards. Many Pacifica condos qualify, but check approval status before making an offer.
VA loans often accept scores around 580-620. Conventional loans typically want 620 or higher for best terms. Your complete profile matters more than score alone.
Veterans with service-connected disabilities are exempt. First-time VA loan users pay 2.15% for zero down. Subsequent use or down payments change the fee amount.