Question 1

Can I use both FHA and VA loans?

Accepted Answer

Not on the same purchase. You pick one. Eligible veterans should compare both before deciding.

Question 2

Does VA require a down payment in Farmersville?

Accepted Answer

No. VA loans allow zero down on qualifying purchases. First-time VA users also get a reduced funding fee.

Question 3

Which loan has a lower credit requirement?

Accepted Answer

FHA accepts scores as low as 580 for 3.5% down. VA has no official minimum, but most lenders want at least 620.

Question 4

What is mortgage insurance on an FHA loan?

Accepted Answer

It's a premium paid to protect the lender if you default. FHA charges it upfront and monthly — VA does not.

Question 5

What is the VA funding fee?

Accepted Answer

A one-time fee paid at closing, usually rolled into the loan. It replaces monthly mortgage insurance and is often lower long-term.

Question 6

Which loan is better for low income buyers in Farmersville?

Accepted Answer

VA wins on total cost if you're eligible. FHA is the better fit for non-military buyers with limited savings.

FHA vs VA Loans in Farmersville, CA