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in Rio Vista, CA
Rio Vista sits on the Delta with a mix of waterfront homes and inland properties. Veterans shopping here face a real choice: use VA benefits or go conventional.
Both loans work in Rio Vista's market. The right pick depends on your down payment, service eligibility, and how long you plan to stay.
Conventional loans are the standard mortgage most buyers use. You need at least 620 credit and 3% down, though 20% avoids PMI.
These loans cap at conforming limits set by Fannie Mae and Freddie Mac. Rates vary by credit score, down payment, and market conditions.
Conventional works for anyone who qualifies financially. No service requirements, no property restrictions beyond standard appraisal.
VA loans let eligible veterans buy with zero down payment. No monthly mortgage insurance, which saves serious money over time.
You pay a one-time funding fee instead of ongoing PMI. Credit requirements are flexible, often accepting scores conventional lenders won't touch.
VA appraisers are strict about property condition. Some Rio Vista fixer properties won't pass without repairs first.
The down payment gap is the biggest difference. Conventional needs 3-20% cash, VA needs nothing if you qualify.
Monthly costs differ too. VA skips mortgage insurance entirely. Conventional adds PMI until you hit 20% equity.
VA charges a one-time funding fee at closing, typically 2.3% for first-time zero-down buyers. Conventional spreads PMI across monthly payments instead.
Property standards matter more with VA. That Delta fixer might need work before VA approves it. Conventional appraisers are less demanding.
Use VA if you qualify and plan to stay long enough to offset the funding fee. The no-PMI benefit compounds over years.
Go conventional if you're buying a property needing work, have 20% saved, or don't meet service requirements. It's more flexible on property condition.
Veterans with strong credit and 20% down should run both scenarios. Sometimes conventional rates beat VA enough to justify using your benefit later.
Yes, if it meets VA property standards and appraises properly. Some Delta properties with unique features need extra documentation.
Conventional typically requires 620 minimum. VA lenders often approve 580-600 scores with strong compensation factors.
First-time zero-down buyers pay 2.3%. Veterans with service-connected disability pay nothing. The fee can be financed into the loan.
Not typically. Some lenders offer lender-paid PMI at a higher rate instead. VA remains the only true no-PMI option under 20%.
Conventional often closes slightly faster. VA appraisals can take longer due to stricter property requirements and appraiser availability.