Question 1

Can I use both FHA and VA loans at the same time?

Accepted Answer

No. You pick one loan per purchase. If you're VA-eligible, use it — the terms are almost always better than FHA.

Question 2

Do VA loans have higher rates than FHA in Scotts Valley?

Accepted Answer

Usually the opposite is true. VA rates tend to come in lower. Rates vary by borrower profile and market conditions.

Question 3

Is the VA funding fee required for every borrower?

Accepted Answer

No. Veterans with a service-connected disability rating are exempt from the VA funding fee entirely.

Question 4

Which loan is easier to get approved for?

Accepted Answer

FHA has more flexible credit guidelines. But VA approval is straightforward for eligible borrowers with stable income.

Question 5

Does FHA mortgage insurance ever go away?

Accepted Answer

Not without refinancing. On most FHA loans originated after 2013, MIP stays for the life of the loan.

Question 6

Are there loan limits for VA and FHA in Santa Cruz County?

Accepted Answer

FHA has county-specific loan limits. VA removed its loan limits for eligible borrowers with full entitlement in 2020.

FHA vs VA Loans in Scotts Valley, CA