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in Petaluma, CA
Petaluma buyers with military ties have a real choice to make. FHA and VA loans both carry government backing — but they work very differently.
The wrong pick costs you money upfront and monthly. Let's make sure you're on the right program before you start shopping.
FHA requires just 3.5% down with a 580 credit score. Drop below 580 and you'll need 10% down — but approval is still possible.
Every FHA loan carries mortgage insurance. You pay it upfront and monthly, for the life of the loan in most cases.
VA loans require zero down payment. No monthly mortgage insurance either — that saves hundreds per month on a Petaluma purchase.
Eligibility is the gatekeeper. You need a Certificate of Eligibility from the VA. Active duty, veterans, and surviving spouses qualify.
Local decision guide
Use this comparison to weigh FHA Loans and VA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Petaluma.
Petaluma buyers with military ties have a real choice to make. FHA and VA loans both carry government backing — but they work very differently.
The wrong pick costs you money upfront and monthly. Let's make sure you're on the right program before you start shopping.
FHA requires just 3.5% down with a 580 credit score. Drop below 580 and you'll need 10% down — but approval is still possible.
The biggest gap is mortgage insurance. VA has none. FHA charges an upfront premium plus a monthly fee — often 0.55% to 1.05% of the loan annually.
Rates vary by borrower profile and market conditions. VA rates typically run lower than FHA rates for comparable borrowers. That gap matters on higher Sonoma County loan amounts.
If you're eligible for VA, use it. The savings on mortgage insurance alone typically outweigh the VA funding fee within a few years.
FHA makes sense when you don't have VA eligibility, or if your service history creates complications with the COE. It's also useful when a co-borrower isn't VA-eligible and you need their income.
Yes. VA loans allow zero down for eligible borrowers. No down payment means more cash stays in your pocket at closing.
Both programs follow conforming loan limits set by FHFA. Sonoma County limits apply equally to FHA and VA purchases.
VA usually wins. No mortgage insurance premium means a lower monthly payment, even if the rate is similar. Rates vary by borrower profile and market conditions.
VA requires an appraisal by a VA-approved appraiser. A separate home inspection isn't required but is strongly recommended.
Yes. Unremarried surviving spouses of veterans may qualify for VA loan benefits. They'll need to obtain a Certificate of Eligibility.
FHA requires 580 for 3.5% down. VA has no official minimum, but most lenders want at least 580 to 620.