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in Dinuba, CA
Both FHA and VA loans offer government backing with easier approval than conventional mortgages. The right choice depends on whether you're military-connected and how much cash you have for closing.
Dinuba buyers often qualify for one but not both programs. FHA requires 3.5% down and accepts any eligible borrower. VA requires military service but charges zero down payment.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% to 0.85% for the loan's life.
These loans work for primary residences in Dinuba regardless of your career background. Debt-to-income ratios can stretch to 50% with compensating factors, making approval realistic for most W-2 earners.
FHA appraisals are stricter than conventional. The property must meet minimum safety and habitability standards, which can kill deals on fixer-uppers.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee of 2.15% to 3.3% unless you're disabled. This fee can be rolled into the loan amount.
Eligibility requires military service: 90 consecutive days during wartime, 181 days during peacetime, or 6 years in Reserves or National Guard. Your Certificate of Eligibility from the VA proves you qualify.
VA appraisers focus on safety issues but are more flexible than FHA on cosmetic problems. Sellers can pay all closing costs if negotiated, meaning you can close with zero out-of-pocket cash beyond earnest money.
The biggest split is down payment: FHA needs 3.5% cash, VA needs zero. On a $350,000 Dinuba home, that's $12,250 versus nothing. VA also skips monthly mortgage insurance, saving $200 to $300 monthly.
Interest rates run similar between both programs. VA rates average 0.25% lower due to the government guarantee. Over 30 years, that quarter-point saves about $50 monthly on a $350,000 loan.
FHA accepts anyone with qualifying credit and income. VA restricts eligibility to military-connected borrowers. If you're eligible for VA, it beats FHA on cost. If you're not eligible, FHA is your government-backed option.
If you're military-connected, VA wins on every financial metric. Zero down, no mortgage insurance, and lower rates save thousands annually. Use your VA eligibility if you have it.
Non-military buyers default to FHA when conventional loans won't work. You need 3.5% saved and tolerance for mortgage insurance premiums. FHA makes sense for buyers with credit scores between 580 and 680 or thin credit files.
Some veterans still choose FHA when they've used their VA entitlement on another property they still own. You get one VA loan at a time in most cases. Talk to a broker about restoring entitlement before deciding.
No, both programs require owner occupancy. You must live in the home as your primary residence within 60 days of closing and stay at least one year.
Both close in 30 to 45 days typically. VA loans sometimes add a week waiting for Certificate of Eligibility if the veteran hasn't obtained it beforehand.
FHA caps at $498,257 for Tulare County in 2024. VA has no maximum for qualified borrowers, though lenders impose their own limits based on income.
Only if you put 10% or more down originally. Below 10% down, FHA mortgage insurance stays for the loan's full 30-year term.
No, VA costs far less. The 2.15% funding fee equals about 2 years of FHA premiums, but FHA continues charging for 30 years.