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in Tulare, CA
Tulare buyers face a clear choice between conventional and VA financing. Each loan type serves different borrowers with distinct trade-offs in down payment, cost, and approval requirements.
Veterans and active military get zero-down access through VA loans. Everyone else typically uses conventional financing, which demands stronger credit and larger down payments but offers broader property options.
Conventional loans are the standard mortgage for most Tulare homebuyers. You need at least 3% down, though 20% avoids private mortgage insurance.
Lenders want 620+ credit scores for these loans. Income limits don't apply, and you can finance any property type from condos to investment homes.
VA loans give eligible veterans and service members 100% financing with no monthly mortgage insurance. You pay a one-time funding fee instead, which you can roll into the loan amount.
Credit standards are more forgiving than conventional loans. Many lenders approve VA borrowers with 580-600 credit scores, and the VA guarantee protects lenders if you default.
The down payment gap is the biggest split. VA borrowers can buy with nothing down while conventional buyers need at least 3% saved, often more to avoid PMI costs.
VA loans charge a funding fee of 2.3% for first-time zero-down buyers. Conventional loans require PMI when you put down less than 20%, typically costing $50-200 monthly on Tulare-area homes.
Use your VA benefit if you have it. The zero-down advantage and no PMI outweigh the funding fee in most Tulare scenarios, especially on starter homes.
Conventional loans work better for buyers with substantial savings who want maximum property choice. Investment properties, fixer-uppers, and some condos require conventional financing since VA has stricter standards.
No. The property must meet VA minimum standards and pass a VA appraisal. Homes needing significant repairs often don't qualify.
VA typically costs less because you avoid ongoing PMI. The funding fee is a one-time charge that's usually offset by savings within 2-3 years.
Conventional loans typically require 620+. VA loans often approve borrowers at 580-600, though individual lenders set their own minimums.
Yes, but only if you're relocating for work or military orders. Investment properties and vacation homes require conventional financing.
Yes. Both conventional and VA loans finance properties throughout Tulare County. VA loans have no geographic restrictions beyond U.S. territories.