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in Vallejo, CA
Vallejo sits right next to Mare Island Naval Shipyard, which means we see more VA loan applications here than almost anywhere else in Solano County. If you're military-affiliated, you've got a choice: use your VA benefit or go conventional.
The decision isn't automatic. Your down payment amount, credit profile, and property type all shift the math. We'll break down exactly when each loan makes sense for Vallejo buyers.
Conventional loans require at least 3% down for first-time buyers and 5% for repeat buyers. You'll pay PMI until you hit 20% equity, which adds $50-250 monthly on a $500k purchase depending on your credit score.
These loans work for any property type—single-family, condos, investment properties, multi-units. Minimum credit score is 620, but you'll see your best pricing at 740+. Loan limits go up to $1,149,825 in Solano County for 2024.
VA loans let eligible service members buy with zero down payment. You'll pay a funding fee (1.4-3.6% depending on use and service type), but that rolls into the loan—no cash due at closing beyond standard costs.
No PMI ever, regardless of down payment. Credit requirements are flexible—we've closed VA loans at 580 for borrowers with clean recent payment history. Property must be owner-occupied and meet VA appraisal standards, which are stricter than conventional.
The funding fee versus PMI trade-off matters most. VA charges 1.4% upfront ($7,000 on a $500k loan), while conventional charges PMI monthly until you hit 20% equity. If you're putting less than 10% down, VA almost always costs less over the first five years.
Property restrictions differ significantly. VA requires homes to meet strict safety and condition standards—peeling paint, roof damage, or certain foundation issues will kill the deal. Conventional appraisers note these problems but rarely require repairs before closing.
Use VA if you're buying a primary residence with less than 20% down. The lack of monthly PMI saves $150-250 per month, which compounds to serious money over a 30-year loan. Exception: if the property needs work, conventional gives you more flexibility to close.
Go conventional if you're buying a fixer, an investment property, or already own a home with an active VA loan. You're also better off with conventional if you're putting 20%+ down anyway—at that point, there's no PMI to avoid and conventional often prices slightly better.
Yes, as long as you occupy one unit as your primary residence. VA loans cover 1-4 unit properties with owner occupancy.
1.4% of the loan amount with zero down, or 0% if you're 10%+ disabled. This fee finances the VA loan program for future veterans.
Typically yes. Most conventional lenders want 620+ for low down payments. We regularly close VA loans at 580-600 credit scores.
Yes. If you've already used your VA benefit, you can get a conventional loan for a second property or investment.
Conventional usually edges out VA by 3-5 days. VA appraisals take longer due to stricter property inspection requirements.