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in Porterville, CA
Both FHA and VA loans help Porterville buyers with limited cash get into homes. The difference comes down to who qualifies and what you pay at closing.
FHA accepts almost anyone with decent credit. VA requires military service but offers better terms across the board.
FHA loans let you put down as little as 3.5% with a 580 credit score. You'll pay mortgage insurance for the life of the loan unless you refinance later.
These loans work well for first-time buyers in Porterville who have solid income but not much savings. Sellers here understand FHA financing and rarely push back on offers.
The upfront mortgage insurance premium costs 1.75% of your loan amount. Monthly premiums add 0.55% to 0.80% annually depending on your down payment and loan size.
VA loans require zero down payment and no monthly mortgage insurance. You pay a one-time funding fee that ranges from 1.4% to 3.6% based on service type and whether it's your first VA loan.
Active duty military, veterans, and surviving spouses qualify. You need a Certificate of Eligibility from the VA before we can process your application.
Rates run 0.25% to 0.50% lower than FHA because the VA guarantee reduces lender risk. Lower rates plus no monthly insurance means hundreds less per month on the same purchase price.
The biggest split is upfront versus ongoing costs. FHA hits you with monthly insurance payments forever unless you refinance. VA charges more upfront but nothing monthly.
On a $350,000 Porterville home, FHA requires $12,250 down plus $6,125 upfront insurance. VA needs zero down but charges roughly $8,750 funding fee for first-time users.
Monthly payments tell the real story. That same $350,000 home costs about $250 less per month with VA thanks to no mortgage insurance and better rates.
If you qualify for VA benefits, use them. The savings over FHA add up to tens of thousands across a 30-year loan. Even the higher funding fee pays for itself in under two years.
Choose FHA when you don't have military service or your VA eligibility is tied up in another property. It's still one of the best low-down-payment options for Porterville buyers.
Some borrowers use both programs at different times. You can buy with FHA now and use VA benefits later when you sell or refinance.
Yes, if you have remaining entitlement or pay off your current VA loan. Some veterans can carry two VA loans simultaneously.
No income cap exists for FHA loans. You just need enough income to qualify based on debt-to-income ratios.
Timeline is similar for both, typically 30-45 days. VA appraisals sometimes take longer due to stricter property requirements.
Veterans with service-connected disabilities are exempt. All others pay the fee unless they're surviving spouses receiving DIC benefits.
Most sellers accept both equally. VA property requirements are stricter, which can slow deals on fixer-uppers.