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in Visalia, CA
Both FHA and VA loans help Visalia buyers purchase homes with less cash upfront than conventional financing. The right choice depends entirely on your military service history and how much you can put down.
FHA loans work for any qualified borrower with 3.5% down and 580+ credit. VA loans require military eligibility but eliminate the down payment entirely.
FHA loans let you buy with just 3.5% down if your credit score hits 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% for most loans.
These loans accept debt ratios up to 50% in many cases. Sellers can contribute up to 6% toward your closing costs, which helps when cash is tight.
FHA works for primary residences including single-family homes, condos, and 2-4 unit properties in Visalia. You can qualify with credit scores as low as 500 if you put 10% down.
VA loans require zero down payment and no monthly mortgage insurance. You pay a one-time funding fee ranging from 1.4% to 3.6% depending on down payment and whether you've used the benefit before.
Most lenders want 620+ credit, though the VA itself sets no minimum score. You can reuse the benefit multiple times and even have two VA loans active simultaneously.
Eligible borrowers include veterans with 90+ days of active wartime service or 181+ days during peacetime. Active duty members after 90 consecutive days and National Guard or Reserves after six years also qualify.
The down payment gap is the biggest split. FHA needs 3.5% minimum while VA needs nothing. On a $350,000 Visalia home, that's $12,250 for FHA versus $0 for VA.
Mortgage insurance costs differ drastically. FHA charges 0.55% annually for the loan's life. VA has no monthly insurance, just the upfront funding fee that you can roll into the loan.
VA loans typically offer lower rates because lenders face less risk with the government guarantee. FHA rates run slightly higher but remain competitive with conventional financing.
Choose VA if you qualify through military service. The zero down payment and no monthly insurance create massive savings over the loan's life. The funding fee costs less than FHA's insurance long-term.
Pick FHA if you're not eligible for VA or buying a manufactured home that doesn't meet VA standards. FHA also works better for buyers with credit scores between 580-620 where some VA lenders won't approve.
Both programs limit how much you can borrow based on Tulare County loan limits. Both allow gift funds for down payments and closing costs from family members.
Yes, your current FHA loan doesn't affect VA eligibility. You'll need to qualify for both payments or sell the FHA property first depending on occupancy rules.
FHA and VA take similar timeframes, usually 30-45 days. VA requires a separate appraisal that checks specific property standards, which can add 3-5 days.
Yes, both FHA and VA work throughout Tulare County. VA has stricter property condition requirements that affect rural homes more often than FHA standards.
Absolutely, if you're eligible for VA benefits. Many borrowers refinance FHA to VA to eliminate monthly mortgage insurance and reduce their payment.
FHA accepts borrowers two years after bankruptcy or foreclosure. VA requires the same two-year waiting period for most cases with similar flexibility.