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in Cotati, CA
Cotati buyers face a fundamental choice: conventional financing or VA benefits. The right answer depends on your military status and how much cash you have for a down payment.
Most veterans can buy in Cotati with zero down using VA loans. Everyone else needs conventional financing, which requires at least 3% down but opens doors if you're not military-affiliated.
Conventional loans are the default option for most Cotati buyers. You need 620+ credit and can put down as little as 3%, though 20% down eliminates mortgage insurance entirely.
These loans work for anyone who qualifies financially. There's no military service requirement, no occupancy mandate beyond one year, and you can use them for primary homes, second homes, or investment properties in Sonoma County.
VA loans let eligible veterans and active military buy Cotati homes with $0 down and no monthly mortgage insurance. You pay a one-time funding fee instead, which can be rolled into the loan amount.
Credit requirements are more flexible than conventional. Most lenders approve 580+ scores, and the government guarantee means competitive rates even with minimal cash reserves.
The biggest split is down payment: VA requires none, conventional requires 3-20%. But VA charges a 2.15-3.3% funding fee upfront while conventional spreads PMI across monthly payments until you hit 20% equity.
Conventional loans work for any property type in Cotati. VA loans require owner occupancy and won't approve investment properties or fixer-uppers that don't meet minimum property standards.
If you have a Certificate of Eligibility and plan to live in the home, use VA. The zero-down feature alone saves tens of thousands compared to conventional financing in Cotati's market.
Pick conventional if you're not military-affiliated, buying an investment property, or purchasing a home that won't pass VA's property condition requirements. You'll need more cash upfront but gain flexibility in property choice.
Yes, if you occupy one unit as your primary residence. VA loans approve 2-4 unit properties as long as you live in one of the units.
Most lenders require 620 minimum. You'll see better rates at 740+, and some portfolio lenders go as low as 580 for special programs.
Both take 30-45 days typically. VA appraisals sometimes add a week if the appraiser needs to inspect repairs, but it's not automatic.
Not usually. Some lenders offer lender-paid PMI at a higher rate, but you'll either pay monthly PMI or accept a rate increase until 20% equity.
Most do. VA loans close on time when you work with experienced brokers who know the process and communicate well with listing agents.