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in Sebastopol, CA
Sebastopol buyers have two strong loan options if you're a veteran or qualify for conventional financing. Both work well in Sonoma County's market, but the requirements and costs differ significantly.
VA loans eliminate the down payment. Conventional loans offer more property flexibility. Your service history and financial profile determine which route saves you money.
Conventional loans are standard mortgages not backed by the government. You need 3-20% down depending on the loan type. Rates vary by borrower profile and market conditions.
Credit requirements start at 620 for most programs. Private mortgage insurance applies if you put down less than 20%. These loans work for primary homes, second homes, and investment properties throughout Sebastopol.
VA loans are guaranteed by the Department of Veterans Affairs for eligible service members and veterans. You pay nothing down on most Sebastopol purchases. No monthly mortgage insurance ever.
The VA funding fee replaces PMI but can be rolled into your loan. Credit standards are more flexible than conventional programs. The property must be your primary residence and meet VA appraisal standards.
The down payment gap is the biggest difference. VA loans need zero. Conventional loans need at least 3%. That's $15,000 to $60,000 on a typical Sebastopol home versus nothing.
Monthly costs also diverge. Conventional loans under 20% down carry PMI that adds $100-300 monthly. VA loans skip this entirely. But VA charges a one-time funding fee of 2.15-3.3% depending on your service and down payment.
Property restrictions matter too. VA loans only work for primary residences that pass stricter inspections. Conventional loans finance anything—vacation homes, rentals, fixer-uppers, condos with lower owner-occupancy rates.
Choose VA if you're eligible and buying a primary residence. The zero down payment and no PMI save significant money upfront and monthly. The funding fee is real but smaller than conventional costs for most buyers.
Go conventional if you're buying investment property, a second home, or a fixer-upper in Sebastopol. Also choose conventional if you want to avoid VA appraisal requirements or you're not eligible for VA benefits.
Some veterans still use conventional loans. If you have 20% down and want the fastest closing, conventional skips the VA paperwork. But for most service members buying a home to live in, VA wins on cost.
Only primary residences that meet VA standards. The property must pass a VA appraisal checking safety and livability—no major repairs needed.
2.15% for first-time use with zero down, 3.3% for subsequent use. Disabled veterans and some surviving spouses are exempt from this fee entirely.
Usually 1-2 weeks longer due to VA appraisal requirements. The extra paperwork adds time but the savings often justify the wait.
Yes. Any down payment reduces your funding fee and monthly payment. But most VA buyers benefit more from keeping cash for reserves.
Conventional typically needs 620 minimum. VA loans have no official minimum but most lenders want 580-620 for approval.