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in Gilroy, CA
Gilroy buyers have two strong options: conventional or VA. The right choice depends on your military status, down payment, and credit.
VA loans are hard to beat for eligible veterans. But conventional loans offer flexibility that VA can't match for non-military borrowers.
Conventional loans are not backed by the government. Lenders set their own guidelines, but most follow Fannie Mae and Freddie Mac standards.
You need at least a 620 credit score. Put down 20% and you skip private mortgage insurance entirely.
VA loans are guaranteed by the Department of Veterans Affairs. Eligible borrowers get zero down payment and no private mortgage insurance.
There is an upfront funding fee — typically 2.15% for first use. Disabled veterans are often exempt from this fee.
The biggest gap is eligibility. VA is restricted to veterans, active-duty, and surviving spouses. Conventional is open to anyone who qualifies financially.
HousingWire flagged the 30-year fixed hitting 6.57% recently — VA rates typically run lower than that. Conventional rates vary by credit score and down payment. Rates vary by borrower profile and market conditions.
If you have VA eligibility, use it. Zero down and no PMI saves thousands over the life of the loan in a market like Gilroy.
No military background? Conventional is your path. Strong credit and 20% down gets you the cleanest deal with no insurance costs.
Yes. VA loans work for primary residences in Gilroy. You need a valid Certificate of Eligibility and must occupy the home.
VA rates typically run lower. But your credit score and loan size affect both. Rates vary by borrower profile and market conditions.
Most lenders want 620 for conventional. VA has no official minimum, but most lenders require at least 580–620.
Usually yes. Skipping the down payment and PMI saves more long-term than the one-time funding fee costs upfront.
Put down 20% and PMI goes away. You can also cancel it once you reach 20% equity through payments or appreciation.
Conventional often closes slightly faster. VA requires a VA appraisal, which can add a few days to the timeline.