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in Farmersville, CA
Both FHA and VA loans help Farmersville buyers with limited down payment funds. The difference comes down to your military service status and monthly costs.
FHA loans work for any qualified borrower. VA loans require military service but offer better terms. Most eligible veterans save thousands by choosing VA over FHA.
FHA loans let you buy with 3.5% down if your credit score hits 580. Between 500-579 credit, you need 10% down. You'll pay mortgage insurance for the loan's life in most cases.
Debt-to-income ratios can stretch to 50% with strong compensating factors. FHA works well for first-time buyers in Farmersville who don't qualify for VA benefits. Expect upfront and monthly mortgage insurance premiums.
VA loans require zero down payment and charge no monthly mortgage insurance. You pay a one-time funding fee that's usually financed into the loan. Rates typically run lower than FHA.
Credit requirements are flexible, and sellers can pay all your closing costs. You need a valid Certificate of Eligibility from the VA. This loan saves eligible Farmersville veterans significant money over FHA financing.
The biggest split is down payment and mortgage insurance. VA requires nothing down. FHA needs 3.5% minimum. VA charges no monthly insurance while FHA adds 0.55%-0.80% to your payment annually.
On a $300,000 Farmersville home, FHA needs $10,500 down plus $165-$200 monthly insurance. VA needs $0 down with no monthly insurance. That's $1,980-$2,400 in annual insurance savings with VA.
If you have VA eligibility, use it. The zero down payment and eliminated mortgage insurance save you thousands annually. There's no reason for eligible veterans to choose FHA over VA in Farmersville.
FHA makes sense only when you're not eligible for VA benefits. It's the next best option for low down payment buyers. Talk to a broker who can verify your VA eligibility before assuming you need FHA.
Yes. You can restore your VA eligibility after selling the property or paying off the loan. Some veterans have full entitlement for multiple VA loans simultaneously.
VA loans have lower payments due to zero mortgage insurance and better rates. On a $300,000 home, expect $150-$250 less monthly with VA versus FHA.
Yes. The 2024 FHA limit for Tulare County is $498,257 for single-family homes. VA uses the same county loan limits for zero-down purchases.
Yes. Larger down payments reduce your loan amount but don't eliminate monthly mortgage insurance. You'd still pay the 0.55%-0.80% annual premium.
Both programs accept lower credit scores. FHA goes down to 500 credit with 10% down. VA has no minimum credit score but lenders typically want 580+.