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in Vacaville, CA
Vacaville sits between Travis Air Force Base and Sacramento, making it home to a strong mix of military families and civilian buyers. That geographic split means we see equal demand for both VA and conventional financing.
The choice between these loans depends entirely on your eligibility and financial profile. VA loans offer unbeatable terms for those who qualify, while conventional loans work for everyone else with decent credit and savings.
Conventional loans require at least 3% down and credit scores typically above 620. You'll pay private mortgage insurance if you put down less than 20%, which adds $100-200 monthly on a $500K loan.
These mortgages follow Fannie Mae and Freddie Mac guidelines, which means predictable underwriting and wide lender acceptance. Rates vary by borrower profile and market conditions, but strong credit can unlock the best pricing available.
VA loans require zero down payment and no mortgage insurance, ever. That combination saves Vacaville buyers roughly $300-400 monthly compared to a 3% down conventional loan on similar purchase prices.
You need a Certificate of Eligibility proving military service, and you'll pay a one-time VA funding fee that ranges from 1.4% to 3.6% of the loan amount. Rates vary by borrower profile and market conditions, but VA rates typically run 0.25% to 0.5% lower than conventional.
The down payment gap is massive: $15,000 cash for 3% down conventional versus $0 for VA on a $500K Vacaville home. Monthly savings run $300-400 from eliminating PMI, which conventional borrowers pay until they hit 20% equity.
VA loans require military eligibility but allow higher debt ratios than conventional. We regularly approve VA borrowers at 50% debt-to-income who wouldn't qualify conventional at 43%. Property must be owner-occupied and meet VA appraisal standards, which can flag minor repairs.
If you're eligible for VA, use it. The zero-down structure and absence of PMI create hundreds in monthly savings that compound over years. The funding fee gets rolled into your loan and costs far less than accumulating 20% down payment while renting.
Choose conventional if you're not military-eligible or buying investment property. It's also the faster option when competing against cash offers, since VA appraisals add 1-2 weeks to closing timelines in tight inventory markets.
Yes, if you occupy one unit as your primary residence. VA allows up to four-unit properties as long as you live in one.
Yes. You can put down as little as 3%, but PMI applies until you reach 20% equity through payments or appreciation.
First-time VA users pay 2.3% of the loan amount. Subsequent use increases to 3.6%, unless you're exempt due to disability.
Conventional typically closes 2-3 weeks faster. VA appraisals require additional property inspections that extend timelines.
Yes. Many Vacaville buyers start conventional then refinance to VA once they understand the savings, assuming they have eligibility.