Loading
in Woodlake, CA
Woodlake buyers face a choice between conventional financing and VA loans if they qualify. Both work well in Tulare County, but the best option depends on your military service history and down payment budget.
Conventional loans serve most buyers with standard income and credit profiles. VA loans give eligible veterans major advantages, especially if saving 20% down feels out of reach.
Conventional loans are standard mortgages not backed by government agencies. You typically need 620+ credit and 3-20% down depending on your risk profile and whether you want to avoid PMI.
Most Woodlake buyers use conventional financing because it works for primary homes, second homes, and investment properties. Rates vary by borrower profile and market conditions, but strong credit gets rewarded with better pricing.
VA loans are government-guaranteed mortgages for military members, veterans, and eligible spouses. The major benefit: zero down payment required, no mortgage insurance, and competitive rates even with lower credit scores.
You need a Certificate of Eligibility proving your service history. VA loans only work for primary residences in Woodlake, not rental properties or vacation homes, but that's rarely an issue for most veteran buyers.
Down payment is the biggest split. Conventional loans need at least 3% down, usually more to avoid PMI. VA loans require zero down for eligible borrowers, which saves years of saving in Woodlake's market.
Mortgage insurance works differently too. Conventional loans charge monthly PMI until you hit 78% LTV. VA loans skip monthly insurance but charge a one-time funding fee, typically 2.3% for first-time use with zero down.
If you're eligible for VA benefits, use them. Zero down and no PMI beat conventional loans in almost every scenario for primary home purchases in Woodlake. The funding fee is real but far cheaper than years of mortgage insurance.
Go conventional if you're buying a rental property, need a second home, or aren't eligible for VA benefits. Also consider conventional if you have 20% down already saved and want to avoid the VA funding fee entirely.
Yes, if you live in one unit as your primary residence. VA loans allow up to four units as long as you occupy one.
Most VA lenders want 580-620 minimum. Conventional loans typically need 620+ for approval, higher for best rates.
Not anymore. Both close in 25-35 days typically. VA appraisals add a few days but aren't the delay they used to be.
Yes, if you're receiving VA disability compensation or are a surviving spouse. Otherwise the fee applies but can be financed.
Rates vary by borrower profile and market conditions. VA and conventional rates run close, though VA often edges ahead slightly.