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in Cotati, CA
Two government-backed loans dominate conversations for Cotati buyers with limited cash. FHA and VA loans both offer low entry points — but they work very differently.
VA is the stronger loan if you qualify. FHA exists for everyone else. Knowing which camp you're in shapes every decision that follows.
FHA loans require just 3.5% down with a 580 credit score. Drop to 500-579 and you can still qualify — but you'll need 10% down.
Every FHA loan carries mortgage insurance. You pay an upfront premium plus a monthly charge for the life of the loan in most cases.
VA loans require no down payment and no monthly mortgage insurance. Eligible veterans and active-duty members get both advantages at once.
There is a VA funding fee at closing — a one-time charge that replaces mortgage insurance. Some veterans with service-connected disabilities are exempt.
VA loans have no mortgage insurance. FHA borrowers pay it every month, often for the entire loan term. That gap adds up fast on a Sonoma County purchase.
FHA accepts borrowers with shakier credit profiles. VA has no official minimum credit score, but most lenders want at least 620. FHA lets you go lower with more down.
If you served, use your VA benefit. The savings on mortgage insurance alone make it the better loan for most eligible Cotati buyers.
If you're not VA-eligible, FHA is a solid path — especially with a lower credit score or limited savings. It's not a consolation prize. It's just a different tool.
Yes, VA loans work on eligible properties throughout Sonoma County. You must have qualifying military service and obtain a Certificate of Eligibility.
Almost always. No mortgage insurance saves most borrowers $100–$300 monthly. Rates vary by borrower profile and market conditions.
580 gets you 3.5% down. Between 500–579, lenders require 10% down. Below 500, FHA is not available.
You can qualify for both, but you choose one per loan. VA is almost always the better pick if you're eligible.
Rarely. It's a one-time cost, often rolled into the loan. Monthly savings from no mortgage insurance offset it quickly.
Both require appraisals and government overlays. VA appraisals can take longer in some markets. Ask your broker about current timelines.