Loading
in Visalia, CA
Visalia buyers face a clear fork in the road: conventional financing or VA benefits. Your military service status makes this decision simple—veterans and active duty get unbeatable terms through VA loans.
Most Tulare County buyers use conventional loans because they don't qualify for VA. But if you served, ignoring your VA benefit means leaving thousands on the table in down payment and ongoing costs.
Conventional loans are the default for civilians buying in Visalia. You need 620 minimum credit, though 680+ gets better rates. Down payments start at 3% for first-time buyers, 5% for repeat buyers.
Put down less than 20% and you'll pay PMI until you hit 20% equity. Rates vary by borrower profile and market conditions, but credit score heavily impacts your rate. Debt-to-income ratios cap at 50% for most lenders.
VA loans let eligible veterans buy Visalia homes with zero down payment. No PMI ever, regardless of equity. You pay a one-time funding fee (1.4-3.6% of loan amount) unless you're disabled.
Credit requirements are flexible—many lenders approve 580+ scores. The VA doesn't set a maximum loan amount in Tulare County. Seller can pay all your closing costs, which rarely happens with conventional.
Down payment is the biggest split. VA requires nothing upfront while conventional demands 3-20%. That's $12,000-$80,000 on a $400,000 Visalia home versus zero.
Monthly costs differ too. VA loans never carry PMI. Conventional loans under 20% down add $150-$300 monthly in mortgage insurance. The VA funding fee gets rolled into your loan, while conventional PMI is a perpetual drain until you refinance or hit 20% equity.
Use VA if you're eligible. Period. The zero down payment and no PMI save you $50,000+ over a typical loan. Even with the funding fee, you come out ahead within two years compared to conventional with PMI.
Conventional makes sense only if you don't qualify for VA. It works for strong credit borrowers who can put 20% down and skip PMI entirely. If you're a veteran shopping conventional, you're ignoring the best mortgage benefit the government offers.
Yes, VA loans work on any home that meets VA property standards. Condos need VA approval, but most single-family homes qualify without issue.
Conventional typically requires 620 minimum, though 680+ gets better rates. VA loans often approve at 580+ with compensating factors like stable income.
First-time use with zero down costs 2.15% of the loan amount. Subsequent uses run 3.3%. Disabled veterans pay nothing.
Both close in 30-40 days typically. VA appraisals sometimes add a few days, but the difference is minimal with an experienced lender.
Not through standard conventional financing. You'd need lender-paid PMI or a piggyback second mortgage, both of which cost you elsewhere.