Question 1

Can I use both FHA and VA loans?

Accepted Answer

Not on the same purchase. You pick one. If you have VA eligibility, we'll almost always run the VA numbers first.

Question 2

Does VA always beat FHA on cost?

Accepted Answer

For most buyers, yes — no mortgage insurance changes the monthly payment significantly. Rates vary by borrower profile and market conditions.

Question 3

What credit score do I need for VA?

Accepted Answer

VA doesn't set a minimum, but most lenders want at least a 580-620. Stronger credit still gets you better rates.

Question 4

What is the VA funding fee?

Accepted Answer

It's a one-time fee paid to the VA — usually 1.25% to 3.3% of the loan. Most borrowers roll it into the loan balance.

Question 5

Can FHA borrowers avoid mortgage insurance?

Accepted Answer

Only if you put 10% down — then MIP drops off after 11 years. Under 10% down, it stays for the life of the loan.

Question 6

Which loan is easier to get approved for in Santa Maria?

Accepted Answer

Both are government-backed, so underwriting is fairly predictable. VA can move faster when paperwork is clean. No approval is guaranteed.

FHA vs VA Loans in Santa Maria, CA