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in Sonora, CA
Sonora home buyers face a clear choice between conventional and VA financing. If you're a veteran or active military, VA loans offer zero down payment and no PMI—advantages that save thousands upfront.
Conventional loans work for everyone but require 3-20% down depending on your equity goals. Both loan types access Tuolumne County's mix of rural properties and downtown homes, but eligibility and costs differ sharply.
Conventional loans are the standard mortgage product for most buyers in Sonora. You'll need 620+ credit for approval, though 740+ unlocks the best rates and terms.
Put down 5% and you'll pay PMI until you hit 20% equity. Go with 20% down from the start and you avoid PMI entirely—a smart move if you're buying rural acreage or properties outside city limits where appraisals can be tricky.
These loans cap at conforming limits or jump to jumbo territory above that threshold. No military service required, and you can use them for primary homes, second homes, or investment properties.
VA loans are exclusive to veterans, active-duty service members, and qualifying surviving spouses. Zero down payment is standard—you can finance 100% of the purchase price without PMI ever appearing on your monthly payment.
You'll pay a one-time VA funding fee that ranges from 1.4% to 3.6% of the loan amount depending on down payment and whether you've used the benefit before. That fee can be rolled into the loan, so it doesn't require cash at closing.
Credit standards are flexible—many lenders approve at 580, though 620+ is common. VA loans work only for primary residences, not investment properties or second homes in the Sierras.
The down payment gap is massive. VA borrowers in Sonora can buy with nothing down while conventional buyers need at least 3%. On a mid-priced home, that's the difference between zero and $15,000-$30,000 upfront.
PMI also separates these loans dramatically. Conventional borrowers pay $100-$300 monthly for PMI until they hit 20% equity. VA borrowers never pay PMI regardless of down payment, saving $1,200-$3,600 per year.
Eligibility is the hard line. VA loans require military service verification through a Certificate of Eligibility. Conventional loans are open to anyone who meets credit and income standards.
If you're eligible for VA financing, use it. The zero-down and no-PMI advantages outweigh the funding fee in almost every scenario, especially if you're putting down less than 20%. You'll close with minimal cash and keep monthly payments lower.
Choose conventional if you're not military-eligible or buying an investment property near Columbia State Historic Park or Twain Harte. Also go conventional if you're putting 20%+ down anyway—at that point, the PMI advantage disappears and conventional may offer slightly better rates.
For Sonora's rural properties on larger lots, VA appraisals can be stricter about property condition. If you're buying a fixer in the foothills, conventional gives you more flexibility on as-is purchases.
No. VA loans require a completed, habitable home as your primary residence. Raw land purchases need conventional financing or land loans.
Not necessarily. Both loan types handle older homes fine if they meet basic safety standards. VA appraisals are slightly stricter on repairs.
Yes, through lender-paid PMI structures. You'll accept a higher interest rate instead of monthly PMI—sometimes makes sense depending on your situation.
Not typically. VA appraisals add 3-5 days compared to conventional, but overall timelines are similar at 30-45 days for most purchases.
Both handle single-family homes and condos equally well. Conventional has more flexibility for unique properties like cabins or multi-acre parcels.