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in Farmersville, CA
Farmersville buyers often choose between conventional and VA loans based on military service status and down payment capacity. Both work well in Tulare County's market, but the requirements and benefits differ sharply.
Conventional loans require 3-20% down and stronger credit profiles. VA loans eliminate the down payment entirely for eligible veterans and active service members.
Conventional loans offer the most flexibility in property types and price ranges. You'll need at least 620 credit and 3% down, though 20% down eliminates private mortgage insurance.
These loans dominate Farmersville because they work for any qualified buyer. Rates stay competitive when your credit exceeds 740, and you can finance second homes or investment properties.
VA loans require zero down payment and charge no monthly mortgage insurance. The VA funding fee (typically 2.3% for first-time users) can roll into your loan amount.
Credit standards run more lenient than conventional, often approving scores in the 580-620 range. Sellers pay your closing costs in most Tulare County transactions, reducing upfront cash needs dramatically.
The down payment gap changes everything. Conventional buyers need $12,000-$60,000 down on a $300,000 Farmersville home. VA buyers need zero, though the funding fee adds about $7,000 to the loan balance.
Monthly costs favor VA loans heavily. A $300,000 conventional loan with 5% down includes $150-200 monthly PMI until you hit 20% equity. VA loans never charge monthly insurance, saving $1,800-2,400 annually.
Property restrictions matter more with VA loans. The home must meet VA minimum property requirements and serve as your primary residence. Conventional loans work for any property type in any condition.
Choose VA if you qualify through military service and plan to live in the home. The zero-down structure and insurance savings outweigh the funding fee in almost every scenario we analyze.
Choose conventional if you lack VA eligibility or need financing for a second home or rental property. Also consider conventional when the Farmersville property needs significant repairs that fail VA inspection standards.
Some eligible veterans still pick conventional loans when buying fixer-uppers or multi-family investments. We shop both options once we understand your property plans and service history.
Only if repairs are cosmetic. VA requires homes to meet minimum property requirements at closing, ruling out major foundation, roof, or safety issues.
No, you can put down 3-19% and pay PMI monthly. PMI automatically cancels once you reach 20% equity through payments or appreciation.
First-time users pay 2.3% of the loan amount, adding roughly $6,900 to a $300,000 loan. Disabled veterans pay zero funding fee.
Conventional typically closes 2-3 days faster because it skips the VA appraisal process. Both average 30-35 days total in our pipeline.
Yes. Many veterans use VA for their primary residence, then conventional for rental properties or second homes purchased later.