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in San Bruno, CA
Both FHA and VA loans help buyers get into San Bruno homes with less cash upfront than conventional financing. The key difference: FHA serves anyone who qualifies, while VA is exclusively for those who've served in the military.
Each program has distinct trade-offs around down payments, insurance costs, and credit flexibility. Most San Bruno buyers lean toward whichever option saves them more money over the loan's first five years.
FHA loans let you buy with just 3.5% down if your credit score hits 580. You'll pay an upfront insurance premium of 1.75% plus monthly mortgage insurance that typically runs 0.55% to 0.85% annually.
Credit scores as low as 500 can qualify with 10% down. FHA allows higher debt-to-income ratios than conventional loans, which helps San Bruno buyers with student loans or car payments stretch their approval amount.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee that ranges from 1.4% to 3.6% depending on service type and whether it's your first VA loan.
Lenders typically want 620+ credit for VA loans, though the VA itself sets no minimum score. San Bruno veterans can reuse their VA benefit after selling or refinancing out of a previous VA loan.
The biggest cost difference shows up in monthly payments. A $900,000 San Bruno home with FHA requires $31,500 down plus roughly $415 monthly for mortgage insurance. That same home on VA needs zero down and no mortgage insurance premium.
FHA accepts lower credit scores and smaller down payments from non-veterans. VA wins on total borrowing costs but requires military service eligibility that most buyers don't have.
If you're eligible for VA, use it. The zero down requirement and lack of monthly insurance cut your housing costs significantly in San Mateo County's expensive market.
FHA makes sense when your credit sits in the 580-619 range or you're not military-connected. It costs more monthly than VA but less than conventional loans with small down payments.
Yes, your VA benefit restores after you sell or refinance out of the previous VA loan. You can use it multiple times throughout your life.
Only if you put down 10% or more at purchase. Then it cancels after 11 years. With 3.5% down it stays for the loan's entire term.
VA appraisals are slightly more demanding about safety and functionality. Both require homes to meet livability standards that can flag deferred maintenance issues.
Veterans with service-connected disabilities are exempt. Everyone else pays it, though you can roll it into the loan amount rather than paying upfront.
Yes, if the complex is FHA-approved. VA has similar condo approval requirements. Check the project's status before making an offer.