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in Porterville, CA
Porterville buyers often choose between conventional and VA loans without knowing the real cost difference. Both work in Tulare County, but they serve different buyers with different financial profiles.
Conventional loans dominate the market because anyone can qualify. VA loans require military service but eliminate down payments entirely—a massive advantage in a state where 20% down on a median-priced home runs six figures.
The right choice depends on your service history, down payment savings, and credit strength. We've brokered both in Porterville and know exactly which situations favor each option.
Conventional loans are the default option for most Porterville buyers. You need 620+ credit for competitive rates, though lenders approve 580s with larger down payments and higher rates.
First-time buyers can put down 3% through Fannie Mae or Freddie Mac programs. Investment properties and vacation homes require 15-25% down depending on the property type.
You'll pay PMI on anything under 20% down until you hit 78% loan-to-value. Rates vary by borrower profile and market conditions, but conventional loans typically beat FHA on pricing once your credit exceeds 680.
VA loans eliminate down payments for veterans and active-duty service members. You can finance 100% of the purchase price on primary residences in Porterville with no PMI ever.
You'll pay a funding fee that ranges from 1.4% to 3.6% depending on your service type and whether it's your first VA loan. Disabled veterans get the fee waived completely.
Credit requirements are more forgiving than conventional—many lenders approve 580-600 scores. Sellers can pay up to 4% toward your closing costs, which helps when you're keeping cash reserves tight.
The down payment gap is the biggest split. Conventional requires 3-20% out of pocket while VA needs nothing upfront beyond the funding fee, which you can roll into the loan.
VA loans charge no PMI regardless of down payment. Conventional loans stick you with $100-300 monthly PMI on a typical Porterville purchase until you reach 20% equity through payments or appreciation.
Property limits matter less now—both programs removed most loan caps. But VA loans only work for primary residences while conventional finances investment properties and second homes.
VA appraisals are stricter about property condition. We see deals fall apart when homes need roof repairs or foundation work that conventional appraisers would overlook.
If you're eligible for VA benefits, use them. The no-down-payment structure and lifetime PMI savings beat conventional in almost every scenario for primary residence purchases.
Conventional makes sense when you're buying a rental property, vacation home, or your second house while keeping the first. VA won't finance those purchases.
Credit below 620 heavily favors VA—conventional lenders either decline or price these deals poorly. Above 740 credit with 20% down, conventional and VA pricing converges, so eligibility becomes the deciding factor.
Don't assume VA always wins on rate. We shop both options for eligible buyers because conventional sometimes prices better for purchase amounts above $800k with strong credit profiles.
Yes, you can reuse VA benefits after selling or paying off a previous VA loan. Full entitlement restores for your next purchase.
Not anymore—both close in 21-30 days typically. VA appraisals add 3-5 days but don't significantly delay timelines in Porterville.
Sellers like conventional because VA appraisals scrutinize property condition more. Strong offers overcome this preference easily.
Yes, through lender-paid mortgage insurance or piggyback second mortgages. Both options trade higher rates for no monthly PMI.
Yes, if the home is on a permanent foundation and you own the land. VA won't finance mobile homes in parks.