Loading
in Sonoma, CA
Two government-backed loans dominate the conversation for buyers in Sonoma. FHA and VA each solve a different problem.
FHA opens the door for buyers with limited savings or credit. VA rewards eligible service members with terms most loans can't match.
FHA loans require as little as 3.5% down with a 580 credit score. Drop below 580 and you'll need 10% down.
Every FHA loan carries mortgage insurance — both upfront and monthly. That cost doesn't disappear when you hit 20% equity.
VA loans require zero down payment for eligible veterans and active-duty service members. No private mortgage insurance ever.
There's a funding fee instead of MIP. It's typically rolled into the loan. Disabled veterans are often exempt.
The biggest gap is who qualifies. VA is restricted to veterans, active-duty members, and surviving spouses. FHA has no service requirement.
On cost, VA wins for qualified borrowers. No MIP saves hundreds per month. FHA MIP adds to your payment indefinitely on most loan terms.
If you served, use your VA benefit. Sonoma home prices are not cheap. Skipping a down payment and MIP is a real financial advantage here.
If you're a civilian buyer with modest savings and a credit score above 580, FHA is a solid path. It's not ideal long-term, but it gets you in the door.
Not on the same property. You pick one. Eligible veterans should compare both — VA usually wins on total cost.
Veterans with full entitlement have no VA loan limit. Partial entitlement borrowers may face county-based limits.
FHA is more flexible on credit. VA has no set minimum score, but lenders typically want 620 or higher.
VA rates are often lower. Rates vary by borrower profile and market conditions — get quotes for both before deciding.
Not easily. Most FHA loans carry MIP for the loan's life. Refinancing into a conventional loan later is the common exit.
Usually yes. The funding fee is a one-time cost. FHA MIP compounds monthly for years — the VA math wins long-term.