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in Santa Rosa, CA
Santa Rosa buyers with military service face a real choice: use VA benefits or go conventional. Both work well here, but the right pick depends on your down payment, credit score, and long-term plans.
VA loans let you buy with zero down and no mortgage insurance. Conventional loans offer flexibility but require at least 3% down and PMI under 20% equity.
Conventional loans are standard mortgages not backed by the government. You need 620+ credit for approval, though 740+ gets the best rates.
Put down less than 20% and you'll pay PMI until you hit that equity threshold. Rates vary by borrower profile and market conditions, but strong credit earns meaningful discounts.
These loans work for any property type and let you cancel insurance once you reach 20% equity. No occupancy requirements after closing, so investors can use them too.
VA loans are backed by the Department of Veterans Affairs for eligible military borrowers. No down payment required, even on Santa Rosa's pricier properties.
You skip mortgage insurance entirely, saving $200-400 monthly on typical purchases here. The VA funding fee (1.4-3.6% of loan amount) replaces it, but you can roll that into the loan.
Credit standards are flexible — many lenders approve 580+ scores. You must occupy the home as your primary residence for at least a year after closing.
The biggest split is upfront cost. VA lets you buy with nothing down; conventional demands 3-20%. That's $18,000-120,000 on a $600,000 Santa Rosa home.
Monthly costs favor VA too. No mortgage insurance saves $250-350 monthly compared to conventional with 5% down. Over five years, that's $15,000-21,000 in your pocket.
Conventional wins on flexibility. Use it for second homes, rentals, or condos with strict HOAs that reject VA. VA restricts you to primary residences only.
Credit matters more for conventional. Below 680, expect rate premiums of 0.5-1.5%. VA pricing stays consistent across broader credit ranges.
Use VA if you qualify and plan to live there. The zero-down, no-PMI structure beats conventional for almost every primary residence purchase in Santa Rosa.
Go conventional if you're buying investment property, a second home, or a condo the VA won't approve. Also consider it if you've used VA benefits before and face a higher funding fee.
Credit below 620? VA is your only option. Between 620-700, VA still wins on rate and cost. Above 740 with 20% down, conventional competes but VA usually edges it out.
VA loans work on most single-family homes, townhomes, and approved condos. Some HOAs reject VA buyers due to repair requirements, making conventional your backup.
Expect 0.5-1.5% of your loan amount annually, or $250-750 monthly on a $600,000 mortgage. Rate varies by credit score and down payment size.
First-time VA buyers pay 2.3% with zero down, 1.65% with 5-10% down. Subsequent use jumps to 3.6% with nothing down.
Conventional often closes 3-5 days quicker since VA requires additional property inspections. Both typically finish in 25-35 days with experienced lenders.
Yes, through a VA cash-out refinance. You can eliminate PMI and potentially lower your rate if you didn't use VA initially.
Some do, fearing VA appraisal issues or repair demands. Strong offers with either loan type win in Santa Rosa's market.