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in Montague, CA
Most Montague buyers choose between conventional and VA loans. Your military service history determines whether you have access to both options or just one.
Conventional loans require down payments and stricter credit standards. VA loans offer zero-down financing but only eligible veterans and service members qualify.
Conventional loans work for any qualified borrower in Montague. You need at least 3% down, credit scores typically above 620, and documented income that supports the debt.
Private mortgage insurance applies when you put down less than 20%. Once you hit 20% equity, PMI drops off automatically, lowering your monthly payment.
Rate pricing depends heavily on credit score and down payment size. A 740 score with 20% down gets significantly better terms than 680 with 5% down.
VA loans eliminate down payment requirements entirely for eligible veterans and service members. You can finance 100% of the purchase price in Montague with no PMI ever.
A VA funding fee applies at closing, typically 2.3% for first-time use with zero down. You can roll this fee into the loan amount instead of paying cash upfront.
Credit requirements are more flexible than conventional loans. Many lenders approve VA borrowers with 580 scores, though rates improve with higher credit.
The down payment gap is massive. Conventional requires at least 3% cash, while VA allows zero down for eligible buyers buying rural properties in Siskiyou County.
Monthly costs favor VA loans even with the funding fee. Conventional borrowers pay PMI monthly until hitting 20% equity, while VA borrowers never pay mortgage insurance.
Property standards differ significantly. VA appraisers flag issues conventional appraisers might miss, sometimes requiring repairs before closing.
Occupancy rules are stricter on VA loans. You must intend to live in the Montague property as your primary residence, not as an investment or second home.
Choose VA if you qualify through military service. Zero down and no PMI save thousands compared to conventional financing, especially on Montague's more affordable properties.
Conventional makes sense for civilians or veterans buying investment properties. VA loans require owner occupancy, so your second or third Siskiyou County purchase likely needs conventional financing.
Strong credit and 20% down narrow the gap between these options. At that point, conventional rates often match or beat VA, and you avoid the funding fee entirely.
No. VA loans require you to occupy the property as your primary residence within 60 days of closing.
Not typically. Both loan types close in 30-40 days when documentation is complete and the property appraises.
No. All conventional loans under 20% down require monthly mortgage insurance until you reach 20% equity.
Conventional typically requires 620 minimum. VA lenders often approve borrowers at 580, though rates vary by borrower profile.
Yes. You can reuse VA benefits after selling or paying off a previous VA-financed property.