Loading
in Loyalton, CA
Loyalton sits in one of California's smallest counties, where home financing depends heavily on your military service status. Veterans get zero-down VA loans while civilians need conventional financing with 3-20% down.
Both loan types work in rural Sierra County markets. The right choice comes down to your service record and how much cash you want to bring to closing.
Conventional loans follow Fannie Mae and Freddie Mac standards. You need 620+ credit for most programs, though 3% down options require 680+ scores.
These loans work for primary homes, second properties, and investment rentals. You'll pay PMI if your down payment is under 20%, which adds $100-300 monthly on typical Loyalton purchases.
Conventional financing offers the most flexibility after closing. You can rent the property out immediately or sell without restrictions that come with government-backed loans.
VA loans eliminate down payments for eligible veterans and active-duty service members. You need a Certificate of Eligibility from the VA proving your service record qualifies.
There's no monthly mortgage insurance with VA loans. Instead you pay a one-time funding fee of 1.4-3.6% depending on down payment and prior VA loan use, which most borrowers roll into the loan amount.
The property must meet VA appraisal standards and serve as your primary residence. Older Loyalton homes sometimes need repairs before VA approval, though most pass inspection without issues.
The biggest split is down payment: VA requires nothing while conventional needs 3-20%. On a $300,000 Loyalton home, that's $0 versus $9,000-$60,000 upfront.
VA loans charge a funding fee but no monthly PMI. Conventional loans reverse this—no funding fee but PMI until you hit 20% equity through payments or appreciation.
Conventional loans accept lower credit scores for conforming loans, while VA has no official minimum but most lenders want 580-620. VA wins on rate—typically 0.25-0.5% lower than conventional for the same borrower profile.
Use VA if you qualify—the zero-down structure and rate advantage beat conventional for primary residence purchases. The funding fee is real but gets spread over 30 years, while conventional PMI hits your budget monthly.
Go conventional if you're buying investment property, a second home, or your VA entitlement is tied up in another property. Also consider conventional if the Loyalton home needs work that won't pass VA appraisal before you can make repairs.
Some veterans use both: VA for their primary residence, then conventional for a Sierra County cabin or rental. Your Certificate of Eligibility shows remaining entitlement if you've used VA benefits before.
Yes, VA loans work throughout Sierra County with no population restrictions. The property must meet basic VA appraisal standards for safety and livability.
Conventional typically requires 620-680+ depending on down payment. VA has no official minimum but most lenders want 580-620 for approval.
First-time VA users pay 2.15% with zero down, 1.5% with 5% down, or 1.25% with 10%+ down. Subsequent use increases the fee to 3.3% with zero down.
Only with a VA loan if you're eligible. Conventional loans require PMI under 20% down, adding $100-300+ monthly until you reach 20% equity.
Both take 30-45 days typically. VA adds an extra appraisal layer but rural markets like Loyalton move at similar speeds for either program.
VA typically requires no reserves. Conventional may require 2-6 months of reserves depending on credit, down payment, and property type.