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in Tulare, CA
Both FHA and VA loans offer paths to homeownership in Tulare with lower barriers than conventional financing. The right choice depends entirely on your military service history and how much cash you have available.
FHA loans serve civilian buyers who need flexible credit standards. VA loans reward military service with unbeatable terms but strict eligibility rules.
FHA loans let you buy with just 3.5% down if your credit score hits 580. Scores between 500-579 still qualify but need 10% down.
You'll pay two types of mortgage insurance: 1.75% upfront and annual premiums between 0.45%-1.05% depending on your loan size and term. These insurance costs stick around for the life of most FHA loans, adding $150-300 monthly on typical Tulare home prices.
Debt-to-income ratios can stretch to 50% with strong compensating factors. Sellers can contribute up to 6% toward your closing costs, helpful in competitive Tulare markets.
VA loans require zero down payment regardless of purchase price. You need qualifying military service: 90+ consecutive days during wartime, 181+ days during peacetime, or 6+ years in Reserves or National Guard.
No mortgage insurance ever. Instead, you pay a one-time funding fee between 1.4%-3.6% based on down payment and whether it's your first VA loan. Disabled veterans get this fee waived entirely.
Lenders typically want 620+ credit scores, though the VA itself sets no minimum. Debt ratios above 41% need extra scrutiny but aren't automatic denials.
The down payment gap matters most. FHA needs at least $8,750 on a $250,000 Tulare home. VA needs nothing, freeing that cash for reserves, repairs, or furniture.
Monthly costs diverge sharply. FHA mortgage insurance adds $200-250 monthly that never drops off. VA has no monthly insurance, potentially saving $60,000+ over a 30-year loan.
Eligibility splits cleanly: VA requires military service, FHA requires none. If you qualify for VA benefits, you'd choose FHA only if your service doesn't meet VA requirements or you're buying a property VA won't approve.
If you're eligible for VA benefits, use them. Zero down plus no mortgage insurance beats FHA on every financial metric. The only exceptions: you're buying a property type VA won't cover, or you've exhausted your VA entitlement.
Choose FHA if you're not military-connected but need flexible credit standards or low down payment options. It costs more monthly than VA but less than conventional loans for buyers with limited funds.
Tulare's agricultural economy means many buyers are self-employed or have variable income. Both programs accept non-traditional income documentation better than conventional loans, though you'll need two years of tax returns showing stable earnings.
No, you choose one or the other. If you're VA-eligible, that's almost always the better financial choice due to zero down payment and no mortgage insurance.
VA loans typically price 0.25%-0.50% lower than FHA. Rates vary by borrower profile and market conditions, but VA usually wins on rate.
FHA accepts manufactured homes built after June 1976 on permanent foundations. VA has stricter requirements but does approve some manufactured homes meeting their standards.
Yes, VA Interest Rate Reduction Refinance Loans (IRRRLs) let you switch from FHA to VA. You'll eliminate mortgage insurance and potentially lower your rate.
Both take 30-45 days typically. VA appraisals sometimes add 3-5 days due to stricter property requirements, but experienced lenders handle both efficiently.