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in South San Francisco, CA
South San Francisco homebuyers have two strong mortgage options to consider. Conventional loans offer flexibility for most qualified borrowers, while VA loans provide exceptional benefits for those who've served our country.
Your choice between these programs depends on your military status, down payment capacity, and long-term homeownership goals. Both options can help you purchase property in San Mateo County's competitive market.
Conventional loans aren't backed by any government agency. Lenders typically require down payments between 3% and 20%, depending on your credit profile and the property type.
These mortgages offer predictable terms and competitive rates for borrowers with solid credit scores. You can use them for primary residences, second homes, or investment properties throughout South San Francisco.
Private mortgage insurance applies when you put down less than 20%. However, you can cancel this coverage once you reach 20% equity, reducing your monthly payment over time.
VA loans serve eligible veterans, active-duty service members, and qualifying surviving spouses. The Department of Veterans Affairs guarantees a portion of each loan, reducing lender risk.
The standout feature is zero down payment required on most purchases. You also avoid monthly mortgage insurance, which saves hundreds of dollars compared to other low-down-payment options.
VA loans include a one-time funding fee, though this can be rolled into your loan amount. Disabled veterans may qualify for fee waivers, making these mortgages even more affordable.
Eligibility separates these programs immediately. Anyone can apply for a conventional loan, while VA loans require military service credentials and a Certificate of Eligibility from the Department of Veterans Affairs.
Down payment requirements differ significantly. Conventional loans need at least 3% down, whereas VA loans allow 0% down for eligible borrowers purchasing in South San Francisco.
Monthly costs vary based on your down payment. Conventional loans under 20% down carry PMI, adding to your payment. VA loans skip monthly insurance but include an upfront funding fee instead.
Property restrictions also matter. Conventional loans work for any property type, but VA loans focus on primary residences that meet specific property condition standards.
Choose VA loans if you qualify through military service and want to minimize upfront costs. The zero-down feature and no monthly insurance create substantial savings for eligible South San Francisco buyers.
Pick conventional loans when buying investment properties, second homes, or if you don't meet VA eligibility. These mortgages also work well when you have a solid down payment saved and want maximum property choice.
Some eligible veterans still choose conventional financing for specific situations, like purchasing condos with strict VA approval requirements. Your SRK Capital loan officer can run scenarios comparing both options based on your exact situation.
Yes, but the condo complex must have VA approval. Not all buildings qualify. Your lender can verify approval status before you make an offer.
The fee ranges from 1.4% to 3.6% of the loan amount, depending on your down payment and whether you've used the benefit before. Disabled veterans often receive full waivers.
Rates vary by borrower profile and market conditions. VA loans often feature competitive rates due to government backing, but your credit score and down payment affect conventional loan pricing.
Yes, once you reach 20% equity through payments or appreciation. You can request cancellation, and lenders must automatically remove it at 22% equity.
Both programs typically close in similar timeframes. VA loans require additional property inspections, but experienced lenders process them efficiently alongside conventional applications.