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in Mount Shasta, CA
Mount Shasta buyers often choose between conventional financing and VA loans if they qualify for military benefits. Both work well in this smaller market, but the right choice depends on your service history and down payment ability.
VA loans dominate when veterans can avoid PMI and put zero down. Conventional loans win when you need flexibility or don't meet VA eligibility requirements.
Conventional loans require 3-20% down depending on your credit and whether you're buying a primary home or investment property. You'll pay private mortgage insurance if you put down less than 20%, but it drops off once you hit that equity threshold.
These loans work for any qualified borrower regardless of military status. They also handle properties VA won't touch, like investment homes or certain cabins in the Mount Shasta area that need significant repairs.
VA loans let eligible veterans and active-duty service members buy with zero down payment. You never pay monthly PMI regardless of equity. The VA funding fee typically runs 2.3% for first-time zero-down buyers, but it can be rolled into the loan.
You need a Certificate of Eligibility proving military service. The property must meet VA minimum standards and serve as your primary residence—no investment purchases or extensive fixer-uppers.
The biggest split is down payment. VA eliminates it entirely for eligible borrowers while conventional demands at least 3%. That matters in Mount Shasta where saving $15,000-$20,000 for a down payment takes time.
Credit requirements differ too. Conventional loans typically want 620 minimum and reward higher scores with better rates. VA lenders often approve 580-600 scores because the government guarantee reduces lender risk. Rates vary by borrower profile and market conditions.
Use VA if you qualify. Zero down and no PMI create unbeatable monthly costs for primary home purchases. The funding fee is real but still cheaper than conventional PMI over the first several years.
Choose conventional if you're not military-eligible, buying an investment property, or purchasing a home that needs work VA won't approve. It's also the move if you're putting 20%+ down anyway and want the cleanest approval process without VA property requirements.
Only if it's your primary residence and meets VA property standards. Vacation cabins or properties needing major repairs won't qualify for VA financing.
Conventional typically closes 3-5 days faster because VA requires additional property inspections. Both usually finish within 30 days in this market.
Both work for rural properties on adequate road access. VA gets stricter on septic systems and well water quality than conventional lenders.
Not with standard conventional financing. You need 20% equity before PMI drops off, unlike VA which never charges monthly mortgage insurance.
Conventional typically requires 620 minimum. VA lenders often approve 580-600 scores due to the government guarantee backing the loan.