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in Sonoma, CA
Sonoma buyers often choose between conventional and VA loans, both solid options with different strengths. Your eligibility and down payment capacity usually determine which path makes sense.
Conventional loans dominate Sonoma's market because they work for anyone with decent credit. VA loans beat them on affordability for those who served, but only veterans qualify.
Conventional loans aren't backed by the government, so lenders set their own standards. You'll need 620+ credit for most programs, though 740+ gets you the best rates.
Down payments start at 3% for first-time buyers and 5% for repeat buyers. Put down less than 20% and you'll pay PMI until you hit 20% equity.
These loans handle Sonoma's wine country properties well, from downtown condos to vineyard estates. Loan limits reach $806,500 for 2025 in Sonoma County.
VA loans eliminate the down payment requirement entirely, backed by the Department of Veterans Affairs. Veterans, active-duty service members, and qualifying surviving spouses can buy with zero cash down.
You'll pay a VA funding fee unless you're disabled, typically 2.15% for first use with zero down. No PMI ever, regardless of down payment amount.
Credit requirements run more flexible than conventional, often approving at 580-600 scores. The same $806,500 limit applies in Sonoma County for zero-down purchases.
The biggest split is eligibility: anyone can get conventional, but VA requires military service. Down payment follows close behind—VA needs nothing down, conventional requires 3-20%.
Monthly costs differ sharply. VA loans skip PMI entirely, while conventional adds $100-300 monthly for PMI under 20% down on a typical Sonoma home.
Interest rates run similar, though VA often edges slightly lower. The VA funding fee hits upfront, but eliminating PMI usually saves more over time for eligible borrowers.
If you're eligible for VA, use it. Zero down and no PMI beat conventional math in almost every Sonoma scenario, especially if you're buying above $600,000.
Conventional makes sense when VA doesn't apply or you're buying investment property. It also wins if you have 20%+ down ready and want to skip the funding fee entirely.
For Sonoma's competitive market, VA's zero-down strength helps veterans compete with cash-heavy buyers. Conventional works better for quick closes since fewer lenders handle VA efficiently.
Yes, if you'll live there as your primary residence. VA allows acreage and agricultural land as long as the home serves as your main dwelling.
Conventional typically closes 2-3 days faster. Fewer lenders handle VA loans efficiently, and VA appraisals sometimes take longer in wine country.
VA rates run 0.25-0.50% lower on average. Rates vary by borrower profile and market conditions, but VA's government backing reduces lender risk.
Yes, put down 20% or more. Some lenders offer lender-paid PMI with slightly higher rates, trading monthly PMI for a rate bump.
VA still wins most scenarios. Putting 20% down reduces the funding fee to 1.25%, and you still avoid PMI entirely throughout the loan.
Some do, fearing VA appraisals or longer timelines. Strong pre-approval and a good local lender neutralize most seller concerns about VA financing.