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in Mountain View, CA
Mountain View homebuyers face an important choice between conventional and VA loans. Each option offers distinct advantages depending on your military service status and financial position.
Conventional loans provide flexibility for any qualified buyer in Santa Clara County. VA loans reward military service with zero down payment and no mortgage insurance requirements.
Understanding these differences helps you choose the right financing path for your Mountain View home purchase.
Conventional loans are traditional mortgages not backed by government agencies. They work for any qualified borrower purchasing a home in Mountain View or throughout Santa Clara County.
These loans require credit scores typically above 620 and down payments starting at 3% for first-time buyers. You'll pay mortgage insurance if your down payment is less than 20%.
Conventional financing offers flexible terms and competitive rates for borrowers with strong credit profiles. Rates vary by borrower profile and market conditions.
VA loans are government-guaranteed mortgages exclusively for eligible veterans, active-duty service members, and surviving spouses. They offer powerful benefits for qualifying Mountain View buyers.
These loans require zero down payment and charge no monthly mortgage insurance. You'll pay a one-time funding fee that can be rolled into your loan amount.
VA financing provides competitive interest rates and more lenient credit requirements than conventional options. Rates vary by borrower profile and market conditions.
The biggest distinction is eligibility. VA loans require military service credentials, while conventional loans are available to any qualified borrower in Mountain View.
Down payment requirements separate these options dramatically. Conventional buyers typically need at least 3% down, while VA borrowers can finance 100% of the purchase price.
Mortgage insurance works differently between the two. Conventional loans require PMI until you reach 20% equity. VA loans skip monthly mortgage insurance entirely but charge a one-time funding fee.
Credit score flexibility also varies. VA loans often accept lower credit scores than conventional financing, making them more accessible for veterans rebuilding credit.
Choose a VA loan if you're an eligible veteran or service member buying in Mountain View. The zero down payment and no mortgage insurance provide significant savings that conventional loans cannot match.
Select conventional financing if you don't qualify for VA benefits or if you're purchasing a property type that VA doesn't approve. Conventional loans also work better for investment properties in Santa Clara County.
Consider your long-term financial picture beyond eligibility. VA loans often result in lower monthly payments due to no mortgage insurance. Conventional loans offer more flexibility in property types and may suit buyers with substantial down payments.
SRK Capital helps Mountain View borrowers compare both options based on your specific situation. We'll calculate the actual costs to show you which path saves you more money.
VA loans work for primary residences including single-family homes and approved condos. Investment properties and some condo complexes don't qualify under VA guidelines.
The VA funding fee is typically 2.3% for first-time users with zero down, paid once at closing. Conventional PMI costs 0.5-1% annually until you reach 20% equity.
Conventional loans may offer benefits if you're buying a property VA doesn't approve or if you want to preserve your VA eligibility for a future purchase.
Conventional loans typically require 620+ credit scores. VA loans often accept scores as low as 580-600, though individual lenders set their own minimums.
Yes, you can refinance a conventional mortgage into a VA loan through an IRRRL or cash-out refinance. This often reduces your monthly payment by eliminating mortgage insurance.