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in Windsor, CA
Windsor buyers face a choice between conventional and VA financing. Both work for single-family homes and townhomes, but they operate under completely different rules.
Conventional loans require down payments and charge PMI under 20% down. VA loans skip both — if you qualify for the benefit.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You need 620 minimum credit, though 740+ gets you the best rates.
Put down less than 20% and you pay PMI until you hit 20% equity. That adds $50-200 monthly on a typical Windsor home.
These loans cap at $766,550 for conforming limits in Sonoma County. Above that, you need jumbo financing with stricter requirements.
VA loans are guaranteed by the Department of Veterans Affairs. No down payment, no PMI, ever — even at 100% financing.
You pay a one-time funding fee instead: 2.15% for first-time use with zero down. That can be rolled into the loan amount.
Credit requirements are more forgiving than conventional. Most lenders approve at 580-600 credit, though rates vary by borrower profile and market conditions.
The down payment gap is the biggest split. Conventional needs 3-20% saved. VA needs nothing — you can buy a $600K Windsor home with closing costs only.
Rates typically favor VA by 0.25-0.50%. The funding fee eats some of that advantage, but over 30 years you usually come out ahead.
Conventional has no eligibility requirement. VA demands military service — active duty, veteran status, or qualifying surviving spouse with a Certificate of Eligibility.
Sellers sometimes prefer conventional offers in competitive situations. They worry VA appraisals will kill deals, though that's overstated in Windsor's market.
If you qualify for VA, use it — especially if you have under 20% saved. The zero-down advantage is real, and PMI savings add up to thousands annually.
Conventional makes sense if you're not eligible for VA or if you're buying a multi-unit property VA won't cover. It's also the move when you have 20%+ down and want maximum seller appeal.
Some Windsor buyers use VA to purchase, then refinance to conventional later to eliminate the funding fee and gain reuse of their VA entitlement. That works if rates drop.
Yes, as long as the property meets VA minimum standards and you use it as your primary residence. Condos need VA approval for the complex.
PMI runs $100-250 monthly on most Windsor purchases under 20% down. Over five years, that's $6,000-$15,000 saved with VA financing.
Not usually. Both take 25-35 days in Windsor. VA appraisals can add a few days, but experienced lenders keep timelines similar.
Yes, you can choose either. Some buyers prefer conventional for stronger offers or to save VA benefits for a future purchase.
Conventional wants 620 minimum, 740+ for best rates. VA often approves at 580-600, though individual lender overlays vary.