Loading
in Dixon, CA
Dixon homebuyers often qualify for both FHA and VA loans but don't know which to choose. Both are government-backed mortgages with lower barriers than conventional loans, yet they serve different borrowers with distinct advantages.
FHA loans work for anyone meeting credit and income requirements. VA loans require military service but offer unmatched benefits for those who qualify.
FHA loans let Dixon buyers put down just 3.5% with credit scores as low as 580. You'll pay upfront mortgage insurance (1.75% of the loan amount) plus annual premiums that stay for the loan's life on most purchases.
These loans accept debt-to-income ratios up to 50% in many cases. That flexibility helps buyers with student loans or car payments who earn steady income but carry existing debt.
VA loans require zero down payment for eligible veterans and active-duty service members in Dixon. No monthly mortgage insurance exists, though you pay a one-time funding fee between 1.4% and 3.6% depending on down payment and service history.
Credit score minimums don't exist in VA guidelines, though most lenders want 620 or higher. Debt-to-income limits stretch higher than conventional loans, and sellers can pay all your closing costs.
Down payment separates these programs most dramatically. FHA needs 3.5% minimum while VA allows zero down for eligible borrowers. On Dixon's median-priced homes, that's thousands in upfront savings with VA.
Monthly costs diverge significantly too. FHA charges mortgage insurance premiums for the loan's life. VA loans skip monthly mortgage insurance entirely, lowering your payment by $100-300 monthly on typical Dixon purchases.
Choose VA if you're military-eligible. The zero down payment and absent mortgage insurance make it objectively superior for qualified borrowers. You'll save money upfront and monthly compared to FHA.
Pick FHA if you don't qualify for VA benefits. It's the next-best option for Dixon buyers with limited savings or credit challenges. The 3.5% down payment beats conventional loans requiring 5-20% down.
Yes, but you shouldn't in most cases. VA loans cost less monthly due to no mortgage insurance and require zero down versus FHA's 3.5%.
VA loans typically price 0.25-0.50% lower than FHA. Rates vary by borrower profile and market conditions, but VA consistently beats FHA pricing.
Yes, both require properties to meet safety and livability standards. VA inspections are slightly stricter, but most Dixon homes pass both programs' appraisals.
You can roll both FHA's upfront mortgage insurance and VA's funding fee into your loan balance. This means no cash due at closing for those charges.
Both FHA and VA share the same conforming loan limits in Solano County. For 2024, that's $766,550 for single-family homes.