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in Woodlake, CA
Both FHA and VA loans make homeownership easier in Woodlake, but they serve different buyers. FHA loans help anyone with modest savings and decent credit buy a home with just 3.5% down.
VA loans are exclusively for veterans and active military. They require zero down payment and no mortgage insurance. Your service history determines which option you can use.
FHA loans work for first-time buyers and anyone without military service. You need 3.5% down if your credit score hits 580. Scores between 500-579 require 10% down.
You'll pay two types of mortgage insurance with FHA. An upfront premium of 1.75% gets rolled into your loan. Monthly premiums range from 0.55% to 1.05% of your loan amount annually.
FHA loans have caps on how much you can borrow in Tulare County. They accept higher debt ratios than conventional loans. This makes approval easier if you carry student loans or car payments.
VA loans beat every other mortgage program on cost. Zero down payment means you can buy a Woodlake home with only closing costs. No monthly mortgage insurance ever.
You pay a one-time funding fee instead of monthly premiums. First-time users pay 2.15% with zero down. Disabled veterans and surviving spouses pay nothing. That funding fee can be financed into your loan.
VA loans require a Certificate of Eligibility proving your service. Most veterans with honorable discharge qualify. Active duty needs 90 consecutive days of service during wartime or 181 days during peacetime.
The down payment gap is huge. FHA needs $7,000 down on a $200,000 Woodlake home. VA needs zero. That difference alone makes VA unbeatable if you qualify.
Monthly costs favor VA even more. FHA charges 0.85% mortgage insurance on that same loan—$142 per month. VA has no monthly insurance. Over 30 years, FHA insurance costs $51,000.
Eligibility creates the hard line. Anyone can get FHA with decent credit and 3.5% saved. VA requires military service. If you served, VA wins on every financial measure.
Check VA eligibility first. If you served and have a Certificate of Eligibility, VA beats FHA every time. Zero down and no mortgage insurance save tens of thousands over the loan term.
Use FHA if you're not military-connected. It's the next best option for buyers with limited savings. The 3.5% down requirement and flexible credit make it accessible when conventional loans aren't.
Some veterans still choose FHA when buying a fixer-upper. VA has strict property condition requirements. FHA allows more repairs to be completed after closing. But for move-in ready Woodlake homes, VA dominates.
Yes. You can reuse VA loan benefits after selling your previous home or paying off the loan. Some veterans qualify for multiple VA loans simultaneously.
No. FHA accepts credit scores as low as 580 for 3.5% down. Conventional loans typically need 620 minimum with much larger down payments.
VA loans typically offer rates 0.25% to 0.50% lower than FHA. Rates vary by borrower profile and market conditions.
Yes, but it rarely makes sense. VA saves money on down payment and eliminates mortgage insurance that FHA requires.
Yes. Both FHA and VA accept gift funds from family members for down payment and closing costs with proper documentation.
Both take 30-45 days typically. VA appraisals can add a few days since fewer appraisers are VA-certified in rural areas.