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in Waterford, CA
Two government-backed loans dominate Waterford's entry-level market. Both offer low barriers to entry — but they serve very different borrowers.
FHA is open to almost anyone. VA is exclusively for veterans, active-duty service members, and surviving spouses. That distinction drives every other difference.
FHA loans require as little as 3.5% down with a 580 credit score. Drop below 580 and some lenders will still approve you — but you'll need 10% down.
Every FHA loan carries mortgage insurance. You pay an upfront premium plus a monthly charge. That cost sticks around for the life of most FHA loans.
VA loans let eligible borrowers buy with zero down and no monthly mortgage insurance. That combination keeps monthly payments lower than most other programs.
You pay a one-time VA funding fee at closing. It can be rolled into the loan. Some veterans with service-connected disabilities are exempt from it entirely.
The biggest gap is mortgage insurance. VA has none. FHA charges it every month, often for the full loan term. Over 30 years, that adds up fast.
VA also tends to come with lower interest rates than FHA. Rates vary by borrower profile and market conditions, but VA's guarantee structure typically advantages the rate.
If you served — use your VA benefit. It's a better loan in almost every measurable way. No down payment, no monthly insurance, lower rates.
If you're a civilian buyer or don't meet VA eligibility, FHA is your strongest path to homeownership with limited savings or a bumpy credit history.
Yes, VA loans are available statewide. You need a valid Certificate of Eligibility and must occupy the home as your primary residence.
Veterans with full entitlement have no VA loan limit. Borrowers with reduced entitlement may face county-based caps.
VA typically wins. No mortgage insurance premium means a lower base payment, even at similar loan amounts. Rates vary by borrower profile and market conditions.
Most lenders require 580 for 3.5% down. Some approve scores down to 500 with 10% down, but lender overlays vary.
Rarely. It can be rolled into the loan amount. And the savings from no monthly mortgage insurance usually offset it within a few years.
Both allow up to 4-unit purchases if you live in one unit. VA requires you to certify occupancy of one unit as your primary residence.