VA Loan vs FHA vs Conventional: Which Is Best for LA Buyers?

I have worked with buyers in Pasadena, Eagle Rock, Glendale, and across the San Gabriel Valley for over 13 years. The single most common question I get from first-time buyers: "Should I go VA, FHA, or conventional?"

The answer depends on three things: your military eligibility status, your credit score, and how much cash you have for a down payment. But in a market where the median home price sits above $800,000 in most LA neighborhoods, the math gets very specific very fast.

This is not a generic loan comparison. I am going to run the actual numbers at four LA price points, show you what each loan costs over 5 and 30 years, and give you a decision matrix you can use today. Every dollar amount below reflects 2026 LA County loan limits and current rate assumptions.

Before I get into the dollar-for-dollar comparisons, here is a quick overview of what separates these three loan programs for Los Angeles buyers.

This is where the rubber meets the road. In Glendale, you are looking at $600K for a condo. In Pasadena, entry-level single-family starts around $800K. Move into South Pasadena or San Marino and you are at $1M to $1.2M before you blink.

Here is exactly what each loan type requires you to bring to closing at four LA price points.

This is the section most "loan comparison" articles skip. They show you the monthly payment and call it a day. But the true cost of each loan type shows up in the insurance or fees you pay over time. For buyers in the LA market, these numbers get large fast.

Let me break this down at the $800,000 price point, which is the sweet spot for Pasadena and NELA single-family homes.

One more thing. Veterans with a VA-connected disability rating of 10% or higher pay zero funding fee. That means the total insurance cost of a VA loan for a disabled veteran is $0. Not $17,200. Zero. On a $1M home in La Canada Flintridge, that is $21,500 you never pay.

Your credit score does not just determine whether you get approved. It determines how much you pay. In the LA market where loan amounts are high, even a 0.25% rate difference on an $800K loan costs $150 per month.

DTI matters more than most buyers realize. In LA, where housing costs eat up a larger share of income, hitting the DTI ceiling is common. Here is how each loan type handles it.

Appraisals work differently on each loan type, and in LA's older housing stock, this matters. Homes built in the 1920s through 1960s across Pasadena, Eagle Rock, and Highland Park often trigger issues on government-backed appraisals that conventional appraisals skip entirely.

Your first mortgage is rarely your last. In my experience working with buyers across Pasadena and the San Gabriel Valley, most people refinance within 3-5 years. The refinance options available to you depend heavily on your original loan type.

The VA IRRRL is the simplest refinance in the industry: no appraisal, no income verification, no credit check in most cases. You just need a net tangible benefit (lower rate). This alone makes VA loans worth choosing if you are eligible. Many FHA borrowers in LA eventually refinance into conventional once they have 20% equity to eliminate their lifetime MIP.

I have put together the scenarios I see most often from buyers across Pasadena, Glendale, Eagle Rock, and the San Gabriel Valley. Find yours below.

After 13 years of helping buyers in LA, I hear the same myths repeated by friends, family members, and even some loan officers. Let me set the record straight.